Dealing with workplace relationships: guidelines for HR Managers

M
Madgwicks

Contributor

Madgwicks Lawyers has been serving clients since 1975 with reliable legal advice, clear explanations of outcomes, and practical options. Their deep expertise helps clients navigate complex matters by providing informed decision-making. The firm prioritizes developing long-term relationships with clients locally and globally, adding value beyond legal services. With over 100 staff and expertise in key practice areas, Madgwicks is an award-winning commercial firm. As part of Meritas, they are connected to a global alliance, offering business law services in 92 countries.
This decision of the Fair Work Commission could have serious implications for employees engaging in 'workplace romances'.
Australia Employment and HR

A recent decision of the Fair Work Commission could have serious implications for employees engaging in 'workplace romances'.

It has traditionally been a very sensitive and private subject, but according to the Fair Work Commission (FWC) employers need to seriously consider disclosure policies for workplace romances

Office relationships are something in which a large number of employers are faced with, given the amount of time we spend at work. While office romances are not uncommon, the parties involved need to take reasonable measures to ensure their work or the business is not adversely affected.

The FWC's recent decision, in M v Westpac Banking Corporation, to reject the unfair dismissal application of a Westpac manager who failed to disclose an office affair with his subordinate employee, is a case in point for anyone failing to disclose an office relationship.

In situations where a manager forms a relationship with a subordinate, especially where the manager directly supervises the subordinate, the FWC is of the view that such relationships have the potential to create conflicts of interest.

What should HR Managers do?

While it would be difficult for employers to enforce a strict 'no relationship policy', all HR Managers should definitely have concrete restrictions and disclosure policies in place.

FWC's decision calls for consideration of the following key issues:

  • a 'Conflict of Interest Policy' that prevents conflicts of interest between managers and subordinates and provides for a solution, for example to reassign one of the employees should a relationship form;
  • a 'Disclosure Policy' that obliges those involved in an office romance to disclose their relationship to HR so that steps can be taken to ensure there is no potential conflict of interest;
  • ensuring that policies on relationships in the office are clear to all staff; and
  • ensuring supervisors are properly trained to effectively supervise and manage their work relationships with subordinates.

Dealing with workplace relationships: guidelines for HR Managers (cont)

However, having a disclosure policy will not guarantee that everyone will abide by it.

Businesses also need a Workplace Relationship policy that outlines steps that will be taken when relationships are not openly disclosed. HR Managers need to ensure that theirDisclosure and Workplace Relationship policies expressly states that disciplinary actions, including dismissal, may be taken where an employee fails to openly and adequately disclose an office relationship, particularly where the relationship has the potential to create conflicts of interest.

How should it be disclosed?

Office relationship disclosure should be a confidential conversation between the employee and HR Manager, who would then decide whether any necessary changes need to be made in order to minimise risk of any relationship-related problems.

Employees should be prepared to show that the relationship will not influence their work or the business.

What should HR Managers put in place?

To ensure the business is not adversely affected by workplace relationships, HR Managers should:

  • implement a Disclosure policy or contractual requirement that expressly states that disciplinary action may be taken, including dismissal, where an employee fails to openly disclose an office relationship; and
  • ensure all employees are made aware of their responsibilities under the Disclosure and Workplace Relationship policies, and their obligations to disclose office relationships to the HR Manager.

(M v Westpac Banking Corporation [2015] FWC 2087 (15 May 2015))

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. Madgwicks is a member of Meritas, one of the world's largest law firm alliances.

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