Pam Loch was featured in The Financial Times.

Office love affair

I am the majority shareholder and managing director of a small advertising agency. I recently found out that one of our senior sales directors, who I also count as a personal friend, is having an affair with a junior colleague within the company. We employ 18 staff and this liaison is the talk of the canteen. I want to keep both employees in the company but I need to address this situation as I also know the wife of the sales director and it is becoming very difficult for me. Can you advise?

Do you know for certain they are having an affair? If you don't know then you
do have to be careful as it may be gossiping that's got out of hand. In any event
you need to think about either confidentially speaking to him or asking an appropriate person in the business to talk to the sales director to make him aware of the gossip. If you know it's true, or he confirms it, you should make him aware that it's your duty as an employer to ensure the situation does not affect the business. You could speak to the junior employee on similar terms.

If you hear any more idle gossip you may want to remind the person it's none of their business. With relationships like this there can be a risk of sex discrimination and harassment claims being made, especially if the relationship sours.
Therefore, if you are concerned at all you could ask both of them lo sign a "love contract". This involves both of them entering into an agreement setting out the basis of their relationship, and acknowledges it as being consensual The agreement can set out the standards of professionalism expected and any changes to management and reporting going forward. You should also consider implementing a relationship policy to govern this type of situation. Having a policy should ensure you are made aware of any new relationships and help you manage employees already in a relationship, to minimise the businesses' exposure to claims and to manage the business effectively.

Pam Loch is the founder of Loch Associates, a law firm specialising in emplogment matters