Workplace Relationships

In September 2025, Nestlé dismissed CEO Laurent Freixe after he failed to disclose a romantic relationship with a subordinate. While this case grabbed headlines, it also serves as a reminder for employers about managing workplace relationships.

Workplace relationships are not limited to sexual or romantic relationships, but can also include family relationships, very close friendships, and close business, financial or commercial relationships, which can complicate dynamics and wider relations in the workplace.

 

Why Workplace Relationships Can Pose Risks

Some personal relationships have the potential to be detrimental to a business if clear rules, boundaries and management practices are not in place. Risks can include:

• Conflict of interest that may compromise business decisions
• Unfair recruitment, promotion, or reward practices
• Preferential treatment of certain employees
• Breaches of confidentiality or misuse of sensitive information
• Inappropriate behaviour, bullying or harassment
• Employee grievances and disputes that escalate

The Nestle case demonstrates that even at the highest levels, undisclosed relationships can have serious consequences, including reputational damage and legal challenges.

 

Legal Considerations:

In the UK, there are no specific laws regulating personal relationships, however, there is a broader employment law such as the Equality Act 2010 that may apply when managing such workplace relationships. The Equality Act prevents direct and indirect discrimination, harassment and Victimisation.