Inappropriate sexual relationships

The Problem Statement

Workplace relationships can become problematic when they impact team dynamics, create perceptions of favouritism, or involve an imbalance of power. While consenting adults are free to make their own choices, the workplace is not a private environment. Relationships between employees, particularly where one holds authority over the other, can lead to serious HR and legal complications. If not managed correctly, they can create distrust, resentment, and even allegations of harassment or unfair treatment.

 

HR Best Practice

SME leaders need clear policies and proactive management strategies to prevent and address inappropriate workplace relationships. Consider the following:

  • Establish Clear Policies: Ensure your business has an up-to-date workplace relationship policy that defines appropriate conduct and outlines potential conflicts of interest.

  • Declare Relationships Early: Encourage employees in relationships to disclose them where they could impact work dynamics, particularly where there is a direct reporting line.

  • Prevent Conflicts of Interest: If a relationship develops between a manager and a subordinate, consider reassigning roles to prevent issues of power imbalance.

  • Train Your Team on Workplace Conduct: Regular training on professional boundaries, ethics, and harassment policies helps set expectations and reduce grey areas.

  • Take Complaints Seriously: If concerns arise, address them promptly and impartially through a structured process.

 

The Legal Perspective

New Zealand employment law has strict provisions against workplace sexual harassment, which includes relationships where power dynamics are involved. Even if a relationship is initially consensual, issues can arise over time, such as:

  • Allegations of Coercion: Power imbalances can complicate consent, leading to claims of undue influence.

  • Claims of Favouritism or Bias: Other employees may perceive preferential treatment, whether real or imagined.

  • Workplace Disruption: If the relationship ends badly, the fallout can affect team morale and performance.

  • Personal Grievances: Employees can raise formal complaints under the Employment Relations Act or Human Rights Act if they believe the relationship has led to unfair treatment or created a hostile work environment.

 

Red Flags to Watch For

It’s essential to stay alert to signs that a workplace relationship is causing issues:

  • Unusual shifts in team dynamics, such as other employees withdrawing or expressing concerns.

  • One employee receiving seemingly preferential treatment in promotions, scheduling, or workload.

  • Complaints from other staff about unequal opportunities or bias.

  • The breakdown of a relationship leading to workplace tension or disruption.

 

Conclusion

At the end of the day, handling workplace relationships as an SME leader requires balance—ensuring legal compliance, upholding ethical standards, and maintaining a professional yet compassionate approach. Addressing these situations with transparency, discretion, and fairness can protect both individuals and the business from unnecessary risks.

No-one teaches this stuff, but at RegenerationHQ, we have the skills and capability to help you with this and a multitude of other small and large issues that can bedevil your business.

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