BP has tightened its internal policies on workplace relationships after its former chief, Bernard Looney, was dismissed without notice for failing to disclose details about his personal relationships with colleagues.

The oil company has updated its code of conduct so that all employees are now required to disclose any intimate relationships with colleagues. Employees previously only had to notify the company of such relationships if they felt there could be a conflict of interest.

BP communicated the changes to its 90,000-strong workforce in an email last week, with the updated policy prohibiting employees “from directly or indirectly managing relatives or those with whom they’re in an intimate relationship”.

Around 4,500 senior managers have also been given three months to report any intimate relationships that have taken place with colleagues since 2021, to “reflect the influence that leaders have.” 

Any BP employees who fail to adhere to these new rules could face disciplinary action, including dismissal.

So, how should employers deal with relationships at work?

People who work together often form personal relationships, and there are no general legal rules which govern or prevent this. Still, where there is the possibility that such a relationship could create risks around conflicts of interest, confidentiality and perceptions of fairness in the workplace, the matter can present various practical and legal concerns for employers. The impact when such relationships come to an end can be even more difficult to manage, with potential harassment and sex discrimination claims arising.

The “consensual relationship agreement” or “love contract” is a concept which has developed in the USA as a tool for employers to regulate such relationships and limit their own liability. Whilst not hugely common in the UK, more businesses are now seeking to manage the potential risks and implement their own guidelines through workplace policies. A relationships at work policy which sets out the expected standards of behaviour and provides a framework for managers when dealing with such situations is likely to be the best defence against any future problems.

For disciplinary action to be reasonable in the context of workplace relationships, employees should be made aware of what would be deemed as unacceptable behaviour. A blanket ban on relationships at work is unlikely to be practical or realistic, and the mere existence of a relationship will not usually be a fair reason to discipline staff. Similar to BP, many employers instead adopt an approach of requiring staff to disclose workplace relationships so that pre-emptive steps can be taken to avoid conflicts of interest (by changing reporting lines, for example).

If an employer has a policy on relationships at work and this has been breached, disciplinary action is likely to be reasonable.

If you require any further guidance or assistance on this matter, including with drafting and implementing your own relationships at work policy, the CG Employment team are on hand to assist.