Workplace relationships are not uncommon. Where people collaborate closely, personal connections are bound to develop. The management challenge is not whether relationships should happen, but how organisations respond when they do.
Recent high-profile corporate controversies, including the incident at Thinking Machines Lab involving co-founder Barret Zoph and the case concerning Nestlé CEO Laurent Freixe’s relationship with a junior employee, both of which reportedly led to their departures, illustrate how quickly a private relationship can become a governance and reputational issue. What begins as a personal matter can potentially escalate into allegations of favouritism, conflicts of interest, harassment claims, or reputational damage, particularly where senior leaders are involved.
For businesses, this raises a key question: how can workplace relationships be managed in a way that respects employees’ private lives while safeguarding the business against legal and reputational risk?
Why bans don’t work
Bans on workplace relationships are not only unrealistic but can also violate employees' rights to a private life under Article 8 of the European Convention on Human Rights, as integrated by the Human Rights Act of 1998. Instead, a clear Workplace Relationships Policy is advised to provide a transparent approach to employer expectations and steps on how to address any potential issues when things go wrong.
There can be a fine line between a consensual relationship and conduct that may be considered sexual harassment. Under the Equality Act 2010, sexual harassment is defined as unwanted conduct of a sexual nature that violates a person’s dignity or creates an intimidating, hostile, degrading, humiliating, or offensive environment.
For instance, a single, respectful invitation to a social event is unlikely to constitute harassment. However, repeated advances after a clear refusal may give rise to a complaint. Particular risks also arise where senior employees use their position of authority to pursue relationships.
If a relationship develops between people in a reporting or managerial position, employers can consider reallocating duties to avoid potential conflicts of interest. If this occurs, it should be approached with sensitivity, and employers must be mindful that any changes do not amount to an unlawful variation of contract without employee consent to avoid potential claims of constructive unfair dismissal.
Another key concern to be aware of when it comes to workplace relationships is the potential for breaches of confidentiality or misuse of sensitive information. This is especially important when both individuals work in the same department or have access to confidential information. In these instances, employers should ensure that individuals are aware of their obligations under the Data Protection Act 2018 and the consequences of disclosing information to their partner.
The objective behind a Workplace Relationships Policy
A clearly defined and consistently applied Workplace Relationships Policy can help employers manage the legal risks associated with workplace relationships and provide a structured approach for addressing issues if they arise.
A policy can outline the employer's expectations for misconduct, specify what is and is not acceptable, and assist in avoiding conflicts of interest, such as perceived favouritism or confidentiality violations.
Additionally, it can play a role in reducing the risk of claims related to harassment, discrimination, or victimisation under the Equality Act 2010.
Key considerations for an effective policy
Organisations can protect individual privacy while maintaining professional standards and organisational integrity by using a well-outlined and consistent policy.
To manage workplace relationships effectively and reduce legal and reputational risk, employers should consider the following:
- Conflicts of interest should be addressed early on, especially if there is a reporting line or a power imbalance.
- Ensure a Workplace Relationships Policy reinforces existing policies, particularly those addressing harassment, bullying, grievance processing, and disciplinary procedures.
- Monitor team dynamics where relationships begin or end, offering support where tensions arise.
- Ensure transparency and fairness in any decisions relating to role adjustments or reallocation of duties.
- If conduct falls below acceptable standards, disciplinary procedures may need to be considered in line with the employer's existing policies.
- A policy can explicitly state that employees must not share commercially sensitive or confidential information with a colleague with whom they are in a relationship, and that failing to uphold this may result in disciplinary action.
- Ensure any grievances or formal complaints are handled impartially.
- Train managers to be familiar with the protocol to recognise and outline conduct that may constitute harassment.
Ultimately, employers cannot dictate personal relationships. However, by implementing a clear and consistently applied workplace relationships policy, organisations can set transparent expectations and ensure that personal relationships do not compromise professional standards or legal obligations.
