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Workplace Relationships: Legal Risks & Employer Duties

Person seated at a desk with a laptop looking at another person standing nearby holding flowers behind their back, representing workplace relationships.

Workplace relationships are far more common than many employers realize! In fact, an ADP Canada survey found that nearly one-third of employees are currently, or have previously been, romantically involved with a coworker.  Given how much time people spend together at work, it’s not surprising that relationships can develop.  

The reality is these kinds of relationships aren’t always easy for employers to prevent, and trying to stamp them out completely just isn’t realistic. The real challenge isn’t stopping relationships from forming, it’s managing the risks that can come with them.  

When workplace relationships create challenges

When workplace relationships are ignored or left unmanaged, issues can quickly surface. Gossip, distractions, perceptions of favouritism, strained team dynamics are common. Even where no inappropriate conduct exists, the perception of preferential treatment can negatively affect trust, morale, and team dynamics.

Breakups can be particularly difficult and can create lingering tension that carries over into the workplace. Other challenges can also arise where personal relationships create actual or perceived conflicts of interest, particularly where one employee has influence over hiring decisions, compensation, scheduling, performance reviews, promotions or discipline. In more serious situations, power imbalances or blurred boundaries can increase the risk of harassment complaints or legal exposure.

Confidentiality concerns may also arise where one individual has access to sensitive employee or business information

What legal responsibilities do employers have when workplace relationships go wrong? 

In Ontario, employers have clear legal obligations when workplace relationships lead to conflict or complaints. These responsibilities are outlined under Ontario’s Occupational Health and Safety Act (OHSA), and the Human Rights Code 

The OHSA requires employers to maintain a safe work environment and specifically addresses workplace harassment, sexual harassment, and domestic violence in the workplace.  

The Human Rights Code protects employees from discrimination and harassment based on protected grounds, and includes protections against sexual harassment. In other words, once behaviour crosses the line, legal responsibilities are triggered, regardless of how the relationship began.

Where is the line between appropriate workplace behaviour and misconduct? 

The line is crossed when behaviours become unwelcome, inappropriate, or starts to negatively affect the workplace. While respectful, consensual interactions between colleagues are generally fine, problems arise when attention continues after it has been declined, makes someone uncomfortable, or disrupts the work environment. 

Context matters too – again, power imbalances – especially between managers and direct reports, can quickly blur that line. If the behaviour undermines professionalism, respect or workplace safety, it may have already crossed into misconduct. 

How should employers handle harassment concerns involving workplace relationships? 

When concerns arise, employers are expected to take them seriously, respond promptly, and where appropriate, conduct a fair and thorough investigation. This also means acting neutrally, avoiding assumptions, and assessing whether steps are needed to protect the parties involved or the broader workplace.  

It is equally important that employers avoid minimizing concerns simply because the relationship was initially reciprocal but later deteriorated.  

Employers should also ensure employees can raise concerns without fear of retaliation or reprisal. Individuals involved in a complaint should not experience adverse treatment because they reported a concern or participated in an investigation.  

What policies/practices help manage relationship risk without over-policing employees? 

Employers are better served by setting clear, practical expectations rather than trying to control the personal lives of their employees. This can be done through strong health and safety and harassment policies, supported by regular training.  

Employees should understand what appropriate workplace behaviour looks like. This means putting policies in place that set clear expectations including, keeping public displays of affection out of the workplace and making it clear that if a romantic advance is declined, it should be respected with no pressure or further pursuit.  

It is equally important to foster a culture where employees feel comfortable disclosing workplace relationships where a conflict of interest, reporting relationship, or workplace impact may exist, without fear of stigma or unnecessary intrusion into their personal lives. This allows employers to be proactive and address potential power imbalances by adjusting reporting relationships or job duties to manage potential conflicts of interest.   

In summary… 

When handled thoughtfully, workplace relationships don’t have to be a liability. With clear expectations, open communication, and timely action when concerns arise, employers can protect their workplace and reduce risk without policing personal relationships. 

If your organization needs support developing workplace relationship policies or navigating a complex situation, feel free to contact us for guidance.

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