How to deal with an employee who is talking badly about other employees all the time?

These type of employee must have to be handled carefully and monitored by managements and its representatives with some corrective action if found his guilty.

if the co. fair and they have system and hard   rules he will talk

the problem first in co. rules should be solve then see who to fix this case

Caution must be that it is not permissible

In the case of non-stop on this act

Should be punished until it stops

I think such type of person should not be on public dealing desk and for such person we are also allowed to use security staff etc and in this context it is also recommended to contain him we may be able to initiate enquiry etc.I

I've worked in three different companies that have all promoted the person who was talking ill about others. I have also been in a situation where I opted not to sign a petition to have a certain employee removed or transferred due to me being new and not knowing the facts. of the other employees signed it and guess what? Instead of transferring him he was made their Supervisor  and made sure he had his revenge.I suppose their reasoning was that he/she wouldn't do anyone any favours. It seems to be the way certain companies prefer to operate.

I normally tend to start gently.  When somebody is being difficult at work it often means they have some kind of difficulty either at work or in their personal life.  Understanding that can solve the problem. 

If that doesn't work then you have to point out that they have to make a choice - either they want to be in this team or they don't. 

Ultimately, it becomes a disciplinary matter. 

The reason could be frustration of being stuck in a position for a long time. If the employee is otherwise efficient he could be transferred to another department. But if that does not help it should be dealt in accordance with the co policy. 

Fire him out! Such a bad practice will never bring about any good for any organisation.

Here, then, are nine things that excellent managers do when confronted with a difficult employee – things that keep them from getting sucked into an endless vortex of ineffectiveness and frustration:

1. Listen.  Often, when an employee is difficult we stop paying attention to what’s actually going on. We’re irritated, it seems hopeless, and we’ve already decided what we think about the employee – so we just turn our attention to other things, out of a combination of avoidance and self-protection.  But the best managers get very attentive when someone’s not doing well.  They know their best shot at improving the situation lies in having the clearest possible understanding of the situation – including knowing the tough employee’s point of view.  An added bonus: in some cases, simply listening can save the day.  You may hear about a real problem that’s not the employee’s fault that you can solve; the tough employee may start acting very differently once he or she feels heard; you may discover legitimate issues he or she has that need to be addressed.
2. Give clear, behavioral feedback. Most managers will spend months, even years, complaining about poor employees… and not ever giving them actual feedback about what they need to be doing differently.  Yes, giving tough feedback is one of the most uncomfortable things a manager has to do.  But great managers learn to do to it reasonably well, and then they do it.  Here’s a post where I outline the approach we teach. This approach does two key things: lowers the other person’s defensiveness, and gives them the specific information they need in order to improve.  Whatever approach you use, make sure it does these two things.
3. Document. Whenever you’re having significant problems with an employee, WRITE DOWN THE KEY POINTS.  I can’t stress this strongly enough.  Dozens of times I’ve had managers tell me that they couldn’t let a difficult employee go because they had no record of his or her bad behavior. And all too often this lack of documentation arises out of misplaced hopefulness; that they didn’t want to be ‘too negative’ about the employee (As if it would all magically go away if they didn’t write it down).  Good managers know that documentation isn’t negative – it’s prudent.  Remember, if you’re able to solve the problem, you can just breathe a sigh of relief and put your documentation in the back of the drawer.