While there are no specific laws preventing workplace romance, company executives are often held to higher standards than frontline employees through employer policies — particularly when a relationship can have a financial impact on an organization, says Daniel Lublin, founding partner at Whitten & Lublin.
“There is an area of law that applies to fiduciaries, who are executives or other leaders — people in positions of control over the corporation — and even in the absence of a formal code of conduct that says anything about [workplace relationships], an executive has obligations towards the company that may apply.”
The topic has made recent headlines, including Nestlé’s removal of chief executive officer Laurent Freixe earlier this month over an undisclosed relationship with a subordinate.
Read: What employers can learn from that ‘kiss cam’ viral moment
In July, a viral video of a technology company’s CEO and chief people officer appearing together on a stadium ‘kiss cam’ resulted in both senior leaders being placed on administrative leave, followed shortly by the CEO’s resignation. And in 2023, Toronto Mayor John Tory abruptly resigned after admitting to an inappropriate relationship with a former staffer.
While the act of engaging in a workplace relationship in and of itself isn’t cause for dismissal if it doesn’t violate a code of conduct, situations which involve a claim of sexual harassment or retaliation following the relationship’s end may be cause for dismissal without severance, as can dishonesty about a relationship, says Lublin.
“That’s what happened in the Nestlé case — the CEO initially denied the relationship and then had to concede to it later on because other people complained and the act of dishonesty is the straw that broke the camel’s back.”
He adds for employers, it’s more important to have a clear policy on relationships than one that’s consistently enforced. “I don’t recommend to all of my employer clients that they have to have an office dating policy — it really depends on the nature and size of the workplace. . . . But in certain workplaces, it can be a very good idea to have a policy that requires managers not to date subordinates so that steps can be taken to protect the company and the other people involved.”
Read: Tory revelation a reminder of need for workplace relationship policies: experts