Be prepared for a ‘Coldplay crisis’ – ALG
Lawyers at A&L Goodbody (ALG) have warned employers of the risks posed by workplace relationships, in the wake of an incident at a Coldplay concert earlier this year.
During the concert, a ‘kiss-cam’ zoomed in on a couple, disclosing a private ‘office romance’ between the chief executive and human-resources chief of a US start-up.
In on the firm’s website, the ALG lawyers say that, almost immediately, the spotlight turned to the company’s board and what actions it would take to deal with the impact on its reputation.
Employment Equality Acts
“While workplace relationships are not against the law, they do pose reputational and legal risks for employers,” the lawyers point out, citing the potential for allegations of harassment, discrimination, and conflicts of interest.
ALG says that one of the key risks is the potential for harassment or discrimination claims in the workplace, “bearing in mind the very broad definition of harassment under the Employment Equality Acts 1998 to 2021”.
Under the legislation, harassment can occur during or after workplace hours and irrespective of intent.
Examples include unwanted conduct in the form of workplace ‘banter’ when referring to the relationship in question, or either party engaging in harassment after any breakdown of the workplace relationship.
Conflicts of interest
“Such relationships can also lead to conflicts of interests, particularly where one of the parties holds a management position,” the ALG lawyers state.
“Even if there is no actual proof the relationship has created a conflict, the perception can do just as much damage to staff morale and the public’s perception of the company,” they add, citing potential questions about career progression, transparency in relation to governance processes and decision-making, and perceptions of bias in existing workplace disputes.
The lawyers also point to the risk of uncovering a once-private relationship, which could undermine the impartiality and integrity of a workplace process.
“For example, where a manager who has engaged in a personal relationship with another employee makes a decision in relation to that employee or is a witness to an investigation in respect of the employee without disclosing the relationship.”
ALG also warns employers about the risks arising from any public controversy over such relationships, and the issues arising from the use of any company resources in the context of such a relationship.
Crisis communications
Where a relationship potentially breaches workplace policy, the ALG lawyers stress the importance of conducting internal investigations in accordance with company policy and fair procedures.
They add that a crisis-communications strategy is “integral”, urging firms to have a plan in place for engaging with key stakeholders – including the board, shareholders, executive management, employees, clients, and customers.
Finally, ALG says that employers should ensure that their policies and procedures adequately capture the potential risks associated with workplace relationships.
“This viral moment serves as a timely reminder for boards to consider ways their organisation is prepared to address a ‘Coldplay crisis’,” the firm’s lawyers conclude.