Workplace relationships aren’t new, and most employers know they happen whether they like it or not. But with the recent viral media case caught on kiss cam at the Coldplay concert highlighting just how messy and damaging things can get when a workplace romance goes wrong, many business owners are now asking us the same question

What are our responsibilities and how do we protect the business?”

For employers, this time of year is high-risk, especially if there’s no clear framework for behaviour, reporting, or managing relationships at work. Below is a practical guide for business owners, based on expert commentary across recent legal discussions in Australia.

Office relationships are not the problem, “unwelcome” behaviour is

Many people meet partners at work; that’s not the issue.
The legal tripwire arises the moment conduct becomes unwelcome. A bit of interest or flirting might feel harmless, but legally, if the person on the receiving end doesn’t welcome it, it can quickly amount to sexual harassment.

Importantly, this applies even if the organisation has no formal “dating policy.” For employers, this means:

  • You cannot dismiss it as “their personal life” if it touches the workplace.
  • You must ensure workers are safe, physically, psychologically, and socially.
  • You must act when behaviour crosses a line, regardless of intent.

Power imbalances are your biggest risk area

A recent viral case revolved heavily around a senior, junior dynamic, something seen regularly in real workplaces. Relationships where one person has influence over another’s:

  • Pay
  • Rostering
  • Promotion
  • Performance review
  • Job security

… carry significant legal and cultural risk.

Even if the relationship is consensual at the start, these arrangements can create:

  • Perceived favouritism
  • Unfairness across the team
  • Pressure or coercion (real or perceived)
  • Serious conflicts of interest

This is why many larger or more sophisticated businesses require disclosure, remove reporting lines between partners, or prohibit senior-junior relationships entirely.

Small businesses aren’t exempt. In fact, the risk is often greater because teams are tight-knit and boundaries blur easily.

Why Christmas parties amplify workplace risk

With December events now in full swing, a few reminders for employers:

  • Alcohol lowers judgement and increases the chance of inappropriate comments, unwanted advances, or boundary-crossing behaviour.
  • The event is still a workplace function, meaning employer obligations apply.
  • Romantic tensions (existing or newly sparked) often surface during social events.
  • Post-event issues – texting, social media, or escalations – often spill back into the workplace the following week.

This doesn’t mean cancelling celebrations. 
It means having a plan.

Do employers need a “no dating policy”? Not necessarily

Unlike the US, formal “no fraternisation” policies are uncommon in Australia. Most businesses rely instead on:

  • Sexual harassment policies
  • Bullying and behaviour expectations
  • Training on respectful conduct
  • Conflict of interest disclosures
  • The new Positive Duty to eliminate sexual harassment

These frameworks are more aligned with Australian culture, which tends to be uncomfortable with telling adults who they can and cannot date. But they only work if they’re:

  • Current
  • Communicated clearly
  • Supported by leadership
  • Accompanied by real action when issues arise

When relationships go bad – business owners must not “manage it themselves”

The most challenging cases aren’t casual flings; they’re the long-term relationships that break down and then spill into the workplace. Employers regularly face:

  • Bullying allegations
  • Intimidation or retaliation
  • Claims of favouritism
  • Psychological injury and stress leave
  • Complaints to Fair Work or the Commission

Once things deteriorate, HR or the business owner should not try to untangle it alone. Bringing in an independent third-party investigator or mediator is often essential to:

  • Keep the process fair
  • Protect privacy
  • Avoid claims of bias
  • Meet legal obligations
  • Prevent escalation

What every employer can do

Re-issue your behavioural expectations

A simple pre-Christmas reminder email goes a long way:

  • Respect
  • Consent
  • Professional standards
  • Reporting channels

Ensure staff know what “unwelcome conduct” means

Make the line clear.
If someone indicates discomfort or disinterest, verbally, physically, or through body language, further conduct is a problem.

Review your conflicts of interest process

If two employees are in a relationship, ensure:

  • They are not in a direct reporting line
  • Decisions about pay, performance or promotion are independent
  • Issues are disclosed early

Train leaders

Especially supervisors who will attend social events.
They are your first line of risk mitigation.

Have an escalation plan

Know who will handle complaints, when to get outside help, and what “good process” must look like.

It’s not about banning romance, it’s about protecting people

Workplace relationships are inevitable.
Workplace harm is not.

As recent cases have shown, ignoring early warning signs or failing to set expectations exposes businesses to:

  • Legal disputes
  • Cultural damage
  • Psychological injury claims
  • Reputational fallout
  • Fractured teams

The goal isn’t to police people’s private lives.
It’s to create a workplace where everyone is safe, respected, and able to raise concerns without fear.

With Christmas celebrations underway and media scrutiny high, now is the perfect time for business owners to review their approach before problems arise.

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