GUEST COMMENT: The legal complexities of having an affair with a colleague whilst working in the City

Fred Goodwin is not the first senior executive whose workplace relationship has become public. Whilst not all office affairs merit an FSA investigation, they can threaten team dynamics, lead to litigation, or even dismissal. If you are concerned about the effect of an affair on your career, read on.

Having an affair?

Check your employer's policy (if any) on office relationships but also on harassment and equal opportunity. Are office relationships prohibited or must you disclose them? The trouble with disclosure, of course, is deciding when your relationship has reached the point where you need to do this. The policy may not be clear. What is the rationale behind the policy: potential conflict, compliance concerns, confidentiality breaches or avoidance of preferential treatment? If you do not comply you risk disciplinary action and even dismissal.

What happens when you disclose?

Many employers will want to stop you from working together. In a small workplace, or if your skills are very specialized, this may mean one of you has to leave. Even if you can both stay, your career prospects may be damaged with questions about your judgment and concern about the potential for conflict or even a discrimination claim in the future. If the policy prohibits relationships altogether, one or both of you may well lose your job. You may have a claim for unfair dismissal or discrimination if this happens, depending on the terms of the policy and how your employer has gone about it.

Other pitfalls

We've seen married employees abuse the expenses system to hide an affair from a spouse. This is gross misconduct and can lead to dismissal without notice. Other nasty problems can arise when an affair ends ranging from tension in the workplace all the way up to claims for harassment and discrimination.

Suspicious colleagues

If colleagues are having a workplace relationship which is affecting the business or your career, you may want to raise this with HR. If you complain but can't prove anything it may make things worse for you. This is why anonymous tip offs are not uncommon.

You have a right to privacy but not where your behaviour affects your employer's business - whether in terms of team morale, compliance or reputation, so look before you leap.

The author is Adrian Crawford, employment partner at City law firm Kingsley Napley LLP