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How to Manage Personal Relationships at Work

How to Manage Personal Relationships at Work

Whether your employees are finding love at work or working alongside family relations, managing any type of personal relationship in the workplace can be challenging for the employer.

As co-workers spend a large majority of their day together, it’s natural that personal relationships can develop between employees.  Whether the personal relationships are sexual, domestic, casual or serious, it can be tricky for employers to manage – more so if the relationship creates a conflict of interest for the business or you find that issues occurring in the relationship outside of work time, seep into the work environment.

Some of the issues that can arise from personal relationships at work include:

  • •  Reduced productivity
  • •  Uncomfortable interactions
  • •  Managing conflict or grievances
  • •  Risk to business operations
  • •  Potential damage to company reputation
  • •  Sexual Harassment claims

In recent months, prominent news stories have highlighted many workplace romances that have exploded into costly public scandals. Australia’s Prime Minister, Malcom Turnbull, recently imposed a formal ban on sex between ministers and their staff based on the conduct of his deputy prime minister, Barnaby Joyce, who had an affair with an adviser Vikki Campion. More recently, two male AFL executives were publicly shamed and resigned after affairs with lower-ranked female staff. Also, the amatory relationship between Tim Worner, the CEO of Seven West Media, and Amber Harrison his former executive assistant led to an ugly legal battle that left in its wake many claims.

The tone with which these scandals are aired proposes that sexual relationships between colleagues are an aberration and should be avoided. But the opposite is actually true: workplaces are where many great relationships begin. According to Relationships Australia, 40% of people in the 35 to 50 age group met their partner at work.

So whilst it’s most certainly not always a problem, the case of George Mihalopoulos v Westpac Banking Corporation T/A Westpac Retail and Business Banking 2015 shows exactly how a personal relationship at work turned sour can create massive legal implications, high costs and reputational damage.

So how can employers manage these personal relationships to reduce any risks to business operations?

While it would be extremely hard to enforce a policy which banned all close relationships at work, employers should consider implementing the following to minimise any potential risks:

1. Conflict of Interest Policy

Employees can be required to disclose any relationship to their employees.

An assessment should be made regarding the level of conflict (e.g. between a manager and subordinate) and a decision made whether roles need to be reassigned to avoid any potential issues arising in the future.

Employees should be able to confirm to the employer that the business will not be adversely affected by the relationship at work but ultimately, the employer needs to make the final call of action in a bid to reduce damage litigation.

2. Values and Code of Conduct

This sets out to articulate the way workers are expected to operate and behave in the workplace based on the company’s values and ethics. It also helps companies enforce legal and ethical requirements for all kinds of decision making.

3. Sexual Harassment Training

All employees should receive training relating to acceptable and unacceptable conduct at work related to both personal relationships in the workplace and sexual harassment.

Employers need to ensure that sexual conduct between colleagues, even if consensual, does not create problems once the relationship has ended or creates an uncomfortable or sexualised work environment for others.

4. Grievance Handling Policy

The primary aim of a grievance handling policy is to outline a process for resolving workplace grievances or conflicts fast and effectively.

Employees are more likely to cooperate and report issues early if they know grievances will be taken seriously and if there is an opportunity for an independent party to assist in resolving the issue if needed.  It can also avoid the cost of resolving claims externally via Fair Work Commission or Federal Court of Australia etc.

5. Workplace Relationships Disclosure Policy

A disclosure policy that should be handled discreetly between the HR Manager and employees concerned.  This policy option should outline the procedure to disclose this type of information and the levels of disciplinary action that could be taken for failure to adhere to the policy.

6. Make Clear to All Employees

A simple step that is often overlooked.  To avoid any doubt, ensure that the training and supporting policies are made clear to every individual in the business and be sure to have training dates recorded on file and policies signed and dated which state that they have read and understood everything clearly.

For further assistance

If you need assistance with anything relating to this topic from drafting and implementing policies, managing or investigating workplace grievances or creating and delivering workplace training, please do not hesitate to contact Cheryl at Human Resource Services on (07) 5530 1571.

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