Personal Relationships at work – A Guide for HR

There’s no point in tiptoeing around the subject: workplace relationships do happen. Considering the average person spends around 80,000 hours at work over their career, it is not surprising that around 15% of people meet their partners at work.

What is a personal relationship?

When we think of personal relationships at work, we normally think of romantic or sexual relationships. However, there are other relationships that can occur in the workplace that are not strictly work-related, including:

• Family relationships;
• Very close friendships;
• Close business, financial, or commercial relationships.

However, not all personal relationships, whether they start at work or not, end with a happily ever after. 

With this in mind, it is beneficial as an employer to consider how relationships at work can affect your business, so you can ensure you do everything you can to safeguard your employees and your business interests.

What effects can personal relationships have on the working environment?

Generally, in most cases, personal relationships in the workplace do not cause any problems for an employer. In fact, they can actually bring benefits to a business which can include:

• Acquiring a wider understanding of the issues faced by the business, as your employees discuss the problems they face in their roles with each other;
• Creating greater commitment and individual interest in the business’s success;
• Reducing the potential costs of recruitment through the introduction/recommendation of family and friends for open roles, ensuring this is done as part of an impartial selection procedure;
• Recruitment recommendations from employees usually tend to be for like-minded individuals who would fit into your business culture.

What are the risks?

Whilst most personal relationships do not cause issues, the keyword here is ‘most’. Being an employer and running a business means accounting for every possible scenario regardless of how small the likelihood of something happening is. It is important to understand what risks there are with workplace connections and how they can impact your business so you can ensure there are clear rules, boundaries and management protocols in place to deal with them. Some of the risks include:

Preferential treatment or bias

There are many reasons why favouritism or preferential treatment happens in the workplace. One of the primary causes is the influence exerted through personal relationships and the bias that can result, especially when one person is in a position of authority and could be the manager or superior to the other.

This could impact other team members and the wider work environment, particularly when considering aspects such as annual leave requests, promotions, the sign-off of expenses and bonuses.

An example of how favouritism can impact a business was seen recently when US investment company Bridgewater Associates’s CEO was caught up in a favouritism claim. Following his first major corporate overhaul, Bar Dea the new CEO, promoted his former romantic partner and her ex-fiancé while letting go of other senior members of staff. The accusations of favouritism incited a board-level investigation, which was carried out by a top legal firm who found no merit in the claims. However, the resulting ripples within the firm have resulted in further claims being made.

Confidential breach/’pillow talk’

It is no secret that people open up to those they are closest to, however, being in a personal relationship with a colleague does not mean that they should breach business confidentiality. All employees have an obligation to treat trade secrets, confidential information, employee data and commercially sensitive information confidentially and not breach those responsibilities when conversing with their partner.

Inappropriate behaviour and grievances

Every organisation or company will have its own culture and guidelines on how their employees should act while in the workplace, usually these are found in some form of employee handbook.

Unfortunately, the ending of more intimate relationships can sometimes have a detrimental effect on a business and lead to potential grudges and grievances between the parties involved. This can impact the workplace and other employees if they result in inappropriate behaviours by either party.

One such inappropriate behaviour is bullying. Bullying is unwanted behaviour that is either:

• Misuse or abuse of authority that humiliates, undermines, or results in emotional or physical harm;
• Offensive, intimidating, malicious, or insulting.

Bullying does not just have to be face-to-face, it can occur over the phone, emails, or social media.

If grievances arise, it is vital that these are managed appropriately that businesses have in place the proper measures to deal with them and that the measures put in place minimise discrimination or misconduct claims. If claims do arise these must be dealt with lawfully and fairly and in line with the relevant organisational policies.

Discrimination and harassment

Sometimes personal relationships at work end and they do not always end on amicable terms. Therefore, a harassment claim against one of the parties could result.

Recently the Daily Mail reported on a case of harassment when Louise Crabtree, a senior executive at an investment firm, was fired after rejecting her boss’s sexual advances. She made a sexual harassment claim against him and was awarded over £100,000 as a payout.

Conflict of Interest

Another potential risk with relationships in the workplace is when an employee has a personal relationship with a close business associate, which is in direct conflict with their professional obligations. Common examples of where this could become a significant risk are when an employee has another job with other employers, where the employee has their own business in addition to their job or an employee is in a personal relationship with someone in a competing business.

Can an employer ban personal relationships at work?

Being aware of the risks and challenges a business might face in regard to personal relationships at work may lead some business owners to consider banning relationships in the workplace; however, this would not be appropriate or realistic and would be seen as breaching an employee’s rights to a family and private life, as outlined in the Human Rights Act. Employers therefore have to accept that relationships at work are part of the process of employing staff.

Legal Considerations

When it comes to relationships at work, there is no specific act or legislation that governs personal relationships. However, there are a few which are relevant or have an impact on certain aspects. These include:

Human Rights Act 1998

Article 8 of the Human Rights Act 1998 states that all employees have the right to a private life. This right is protected and therefore employers have to be mindful of this, especially in any policies or measures they instigate. 

Employers need to ensure that what they put in place does not infringe unnecessarily on the employee’s privacy, whilst also safeguarding their workforce’s welfare, balancing their commercial interests and minimising any legal consequences that could arise.

Equality Act 2010

The Equality Act 2010 protects individuals against discrimination (direct and indirect), harassment, or victimisation in the workplace and in wider society.

The definition of discrimination is treating someone less favourably because of certain characteristics and features. These characteristics, which are known as Protected Characteristics include: sex, religion/belief, race, age, disability, sexual orientation, gender reassignment, marriage and civil partnership and pregnancy/maternity.

The main responsibility for discrimination in the workplace lies with the employers; therefore, they must do all they can to not unfairly discriminate, prevent discrimination, protect employees from others and maintain their duty of care to their employees.

Employers can also be held accountable and responsible for the actions of their employees in the workplace, this is known as ‘vicarious liability’. Individuals who discriminate against others at work are responsible for their actions and complaints or even tribunal claims can be made against these individuals, as well as employers.

For example, it could be that sex discrimination has taken place if a female employee is dismissed or asked to leave rather than a male employee because of their relationship or the fact that their relationship has ended.

In some cases and situations of discrimination, employees might also be eligible to resign and claim constructive dismissal.

Protection from Harassment Act 1997

The Protection from Harassment Act 1997 also seeks to protect individuals from harassment and similar conduct. This also enables employees to claim harassment through the civil courts under the legislation.

What can be done to manage relationships in the workplace?

As an employer, once you understand the possible issues associated with personal relationships at work, you can implement the necessary measures to reduce the risks and protect your employees, these can include:

• Consider implementing a policy specifically relating to relationships at work to ensure your employees are clear on their rights and where you stand on this as an employer;
• Providing training on relationships at work;
• Review your general policies: Does your anti-harassment and bullying policy need updating?
• Ensure you have a clear grievance policy and that you always promptly investigate any grievances relating to relationships in the workplace;
• Nurture an office culture where employees can feel safe and supported to raise concerns and queries about workplace relationships without penalty;
• Introduce a ‘declaration’ form or procedure so that job applicants and employees can declare any personal relationships they have within the company, so that as the employer, you can take the necessary and appropriate steps to safeguard your business;
• Restrict involved parties in the recruitment of an individual they have a personal connection with;
• If two employees are in the same team, arrange to meet with them and discuss the possible impact their relationship could have on their work and other employees, as well as explore any measures that can be introduced to avoid any issues;
• If a relationship is between a manager and an employee, consider discussing with the parties the options of assigning the employee a different line manager, moving either party to a different part of the business, or office if this doesn’t conflict with contracts or discriminate based on any protected characteristics.

Why you should have a relationships at work policy

A relationship at work policy allows you, as a business owner, to set out the standards of what is expected, what is and is not acceptable behaviour and outline the actions that will be taken if problems arise. It also allows you to ensure that given all of the complications that can result from personal connections, every scenario is considered so your business and employees stay safe.

An appropriate, well-written policy outlines the expectations and standards for how your employees should act, as well as the actions that will be taken if specific situations arise.

The policy will also help your directors, managers, and supervisors comprehend their role in managing different relationships in their teams and the actions they need to take.

What should the policy include?

The policy’s scope and purpose should be clearly defined as this document is the reference point for your employees. It is vital that your employees understand why you are introducing the policy, as they will need to support the rules you are putting in place. A relationship at work policy allows employers to outline what the measures are and makes it clear to employees what actions will be taken if the rules are broken.

A relationship at work policy should look to include:

• A definition of what constitutes a personal relationship at work to ensure there is no misunderstanding;
• The consequences should someone breach the policy;
• The actions to be taken by managers/supervisors/directors if the policy is breached;
• A clear definition of acceptable and unacceptable behaviours within the workplace to ensure professionalism at all times;
• The businesses’ disclosure requirements, so it is clear when, how and to whom employees should disclose relationships;
• The measures that will be implemented to reduce the risk to the employee’s welfare;
• The measures that will be implemented to reduce the risk related to the business’s interests;
• The measures that will be implemented to manage personal relationships at work, such as recruitment, behaviours, conflicts of interest and management issues;
• How the business will deal with discrimination, harassment, or unwanted personal conduct as a result of a relationship or the breakdown of it.

If a complaint is made and goes to tribunal, they will want to know if a policy was in place that outlined what behaviours were expected of an employee and clearly stated the consequences of a breach. They will also ask if the rules relating to the policy were satisfactorily communicated throughout the business and properly executed. So, to safeguard your employees and your business, it is well worth having a relationship at work policy.

HR solicitors near you – providing the expert guidance you need

At Tollers, we understand the invaluable role your employees play in your business, as well as the potential challenges employers can face. Having the right support and policies in place is fundamental to business success. 

Tollers Employment Law and HR specialists provide personal, hands-on support, helping you navigate any employment law challenges that may arise.

If you would like assistance to put in place a relationship at work policy to ensure you are prepared regardless of the situation or feel it is time to review your policies and procedures… talk to Tollers on 01604 258558 and speak to our team today, who can help you create a comprehensive solution to reduce your risks whilst looking after the interests of your business, our team are here for you.