A recent global headline-grabbing moment between two US tech company employees at a Coldplay concert in Massachusetts offers local employers a timely reminder: workplace relationships can have real reputational and cultural impacts. It’s a chance to reflect on how your business manages office romances, gossip, and personal conduct, and whether your policies are clear, current, and effective. 

Consensual co-worker relationships

International television and cinema often depict companies banning romantic relationships between employees. Whilst this may occur in some countries, and may even be legal, it is illegal to prohibit a relationship between co-workers in Australia. Discrimination laws in Australia prohibit the discrimination of someone based on their relationship status. This means if two employees are in a consensual relationship, the company cannot take disciplinary action against them for simply being in a relationship. 

Having a relationship between co-workers is not without risks and employers are allowed to mitigate those risks. The potential risks of a co-worker relationship are: 

• Confidentiality breaches 
• Conflict of interest 
• Arguing in the workplace 
• Preferential treatment or inconsistent treatment of other employees 
• Lower productivity 
• Complications in daily work interactions. 
• Sexual harassment

In order to minimise risks from relationships between co-workers, employers can implement policies within the workplace. These policies can include: 

• the disclosure of relationships to the human resources department – especially if the relationship is between a manager and a subordinate,
• conflict of interest clauses – including how to manage conflicts of interest that may occur such as performance evaluations, promotions, and other work-related decisions, and
• a reminder to employees of the requirement to maintain professional conduct and respectful behaviour in the workplace regardless of any personal relationships.

Managing this risk can be of particular importance as not all relationships last – this is as true in the workplace as it is outside of the workplace. Often, the issues arise once the relationship is over, and it is better for the employer that they be prepared to manage any fallout. It is much easier to do this when employees are fully aware of the employer’s behavioural expectations. 

Out of hours conduct 

If it is revealed two co-workers are engaging in a relationship outside of the company’s work hours, an employer may have a valid reason to terminate – but only under very limited circumstances.

In order for an employer to have a valid reason to terminate an employee for out of hours conduct, the conduct must be sufficiently connected to the employee’s employment and, when viewed objectively:  

• The conduct has caused, or is very likely to cause, serious damage to the employee’s relationship with the employer, 
• the conduct has caused, or is very likely to cause, damages the employer’s interests, or 
• The conduct is incompatible with their duties as an employee. 

If an affair between colleagues is uncovered, it is unlikely there would be grounds for the termination of the employees involved. If, for example, an affair is uncovered by a kiss cam at a public concert between a CEO and Chief People Officer, there may be grounds for termination when investigated further, but termination cannot simply occur because of negative headlines. This is because the affair alone, for most employers, is unlikely to impact the employment relationship or the business’ interests. 

An example of where it may be justified would be if the more senior employee in the relationship gave less favourable treatment to another employee to the benefit of their partner, on the basis of their relationship, and in doing so the company suffered poorer business outcomes. It would be the responsibility of the employer to investigate the conduct and determine the extent to which the poorer treatment was driven by the more senior person’s conflicted interest.   

Workplace gossip and chatter

When there is a relationship between co-workers, whether it is known or becomes revealed in a scandal, gossip and rumours in the workplace tend to surface. Employers should remind employees that discussing, gossiping, and spreading rumours may be defined as bullying and could be subject to disciplinary action. 

Workplace bullying is the repeated and unreasonable behaviour directed towards a worker or a group of workers that creates a risk to health and safety. This behaviour can be intentional or unintentional and leaves a person feeling victimised, humiliated, intimidated, or threatened. 

If an affair is uncovered in the workplace between two co-workers, is it acceptable workplace behaviour to gossip and spread rumors about the situation? Whilst people may have the personal belief that cheating is ethically wrong, participating in the circulation of gossip and rumours about the ethically wrong behaviour can result in disciplinary action. 

Further, it creates a psychosocial hazard as people who feel victimised, humiliated, intimidated, or threatened are likely to be psychologically injured by the experience from their colleagues. 

Employers have a positive duty to manage the risk of psychosocial hazards in their workplace. Read more about positive duties here.  

How can Business Chamber Queensland help?

Business Chamber Queensland is here to support you with practical, tailored advice to navigate these complexities.  

We can assist with drafting and reviewing codes of conduct and bullying and harassment policies, managing gossip and psychosocial risks, and handling delicate matters like conflicts of interest or employee complaints. If your business finds itself facing uncertainty or fallout from a workplace relationship, our team can help you manage the risks, protect your culture, and ensure compliance every step of the way.