Date
08 October 2025Updated
08 October 2025
2 min read
Romantic and close personal relationships can develop naturally in any workplace - after all, we spend much of our lives at work. But without clear policies and thoughtful management, these relationships can quickly lead to conflict, perceptions of unfairness, and even legal risk.
In this post, we explore the key risks, the implications of having no clear relationship policy, and how HR can handle these situations sensitively and effectively:
1) The Risks of Unmanaged Workplace Relationships
When workplace relationships aren’t properly managed, they can cause all sorts of issues. Favouritism - whether real or perceived - can damage team morale and trust. Gossip spreads quickly, fuelling resentment and distraction. This becomes further problematic when relationships break down - HR teams may face grievances, discrimination, bullying, victimisation, or harassment claims.
Where there’s a manager–subordinate relationship, additional risks arise around power imbalance and fairness - are decisions and opportunities being influenced by personal connections?
Even when nothing explicitly goes wrong, the perception of favouritism or bias can be toxic, leading to an unhealthy and divided workplace environment.
2) The Impact of Having No Relationship Policy
Many organisations still lack a formal policy on workplace relationships, or fail to communicate their stance clearly to employees. This leaves everyone in limbo.
Without clear guidance:
- Employees don’t know where they stand.
- Managers are forced to improvise when issues arise.
- HR is left managing inconsistency and risk.
In the absence of a transparent policy, relationships often remain hidden until problems surface - by which point it’s harder to resolve matters fairly. When HR does intervene, decisions can appear arbitrary or unfair, compounding the problem rather than solving it.
3) Setting the Right HR Approach
There’s no one-size-fits-all rule. HR departments should decide their stance based on company culture, industry, and the level of risk involved.
In some sectors - such as finance, government, and healthcare - stricter rules are justified due to the high levels of trust and responsibility involved. Others may take a lighter-touch approach.
However, a total ban on workplace relationships is both unrealistic and potentially unlawful. Under Article 8 of the Human Rights Act 1998, employees have a right to a private and family life. A blanket prohibition would be unreasonable and likely unenforceable.
A more balanced approach is to require early, reasonable disclosure where there’s a direct reporting line or potential conflict of interest. This allows HR to manage any risks proactively without intruding unnecessarily into people’s private lives.
4) What HR Should Do When Concerns Arise
If HR or management becomes aware of a relationship that could present a conflict of interest or affect professionalism, the key is to handle it with care, confidentiality, and consistency.
Here’s how to approach it:
- Review internal policies to ensure any action aligns with company procedures. If you don’t have a policy, Neathouse can draft a bespoke Policy;
- Hold a confidential, non-judgemental conversation with the individuals involved to understand the situation;
- Assess potential risks — such as reporting lines, conflicts of interest, or team dynamics;
- Take reasonable steps (for example, adjusting reporting structures) to manage conflicts;
- Document discussions discreetly and monitor the situation going forward.
HR should also remain alert to signs of favouritism, disruption, or complaints. Formal action should only be taken where policies are breached or conduct is affected.
Final Thoughts on Workplace Relationships - HR
Workplace relationships are inevitable, but unmanaged ones are risky. A clear, fair, and human approach helps protect the business while respecting employees’ rights.
By encouraging transparency, consistency, and sensitivity, HR can navigate these situations effectively - safeguarding both the organisation’s reputation and the wellbeing of its people.
