The recent headlines surrounding Astronomer’s CEO and Head of HR have prompted wide public discussion – and not just for the memes. While many have laughed along at the #ColdplayGate commentary, the incident raises serious questions for employers about workplace relationships and the risks they can create.
This week, two senior executives find themselves out of (or likely soon to be out of) highly paid jobs, facing significant reputational damage and personal consequences. The incident has reignited an important conversation: to what extent can (and should) employers regulate consensual relationships between employees?
Are employees allowed to have romantic relationships with colleagues?
There is no blanket prohibition under Australian law against romantic relationships between employees. However, employers may regulate employees’ conduct outside of work hours where that conduct has a relevant connection to the employment relationship. Examples include where the conduct could cause the employer reputational harm, create a conflict of interest, breach a policy or contractual obligation or otherwise be incompatible with an employee’s duties.
While legislation doesn’t explicitly ban such relationships, many organisations address them indirectly through internal policies, such as:
- Conflict of interest policies;
- Codes of Conduct; and
- Employment contracts or enterprise agreements.
In the case of the Astronomer Executives, it’s likely their actions would breach one or more such policies.
When one party is responsible for the other’s remuneration or career progression (as appears to have been the case here) the situation gives rise to a serious conflict of interest. It also undermines confidence in leadership and can expose the company to liability, organisational problems and reputational damage.
A matter of trust and leadership
Senior executives are not only bound by their employment contracts; they are also entrusted with setting the tone from the top. Leaders must uphold the values and reputation of the organisation, both during and outside of work hours. Inappropriate relationships at the executive level can quickly compromise a company’s governance framework and workplace culture. Employees can lose trust in the employer’s maintenance of appropriate workplace standards. This can lead to staff disengagement, turnover and ultimately lost profits
From a legal perspective, the employer’s response to a workplace relationship must be proportionate, consistent, and carefully managed. These scenarios also highlight the importance of having robust, well-communicated policies in place – not only to manage conduct when it occurs, but also to deter it in the first place.
Key takeaways for employers
Whether your organisation is a startup or large employer with hundreds of staff, #ColdplayGate is a timely reminder to:
- Review your workplace policies
Ensure your policies clearly address conflicts of interest, out-of-hours conduct and workplace standards and reporting obligations. - Clarify disclosure expectations
Some organisations require employees to disclose workplace relationships. If implementing this requirement, ensure that any directions to employees are lawful, reasonable and applied consistently. - Update your sexual harassment framework
Even consensual relationships can give rise to complaints or harassment claims. Make sure your policies reflect the current legal standards and best practice principles, including clear avenues for complaint and investigation. - Reinforce values and culture
Use this opportunity to reiterate your organisation’s values and behavioural expectations, especially for those in senior roles. Remind staff that their conduct, both in and out of the office, reflects on the organisation. - Seek advice on workplace relationships
If your organisation has discovered a workplace relationship and is unsure how to manage it, seek advice. Some workplace relationships can be appropriately managed with, for example, changes to reporting lines or other safeguards.
For employers, it’s about making sure lines, in the form of policies and expectations, are clearly drawn before they’re crossed. To quote Coldplay, “In my place, in my place, were lines that I couldn’t change.”
For tailored advice on managing workplace conduct or updating your internal policies, contact Pragma Lawyers’ Employment & Industrial Relations team.
