Company Policy on Employee Relationships in the Philippines: A Complete Legal & Practical Guide

Workplace romances happen. The law doesn’t forbid them, but it does require employers to prevent harassment, manage conflicts of interest, and handle employee data responsibly. This article explains how Philippine companies can design and enforce a fair, lawful, and culturally attuned Employee Relationships Policy—covering romantic, familial, and close personal ties—without overreaching into private life.

I. Legal Foundations (Philippine Context)

Labor Code & Due Process
- Company policies (e.g., fraternization, conflict-of-interest, anti-nepotism) are valid company rules when: (a) reasonable and related to business needs; (b) made known to employees; and (c) enforced consistently and fairly.
- Discipline must observe due process (notice–hearing–decision). Dismissal requires a lawful cause and compliance with procedural due process.
Anti-Sexual Harassment Act (R.A. 7877)
- Requires employers to prevent and address sexual harassment, including those committed by supervisors or co-workers.
- Employers should have a committee, written procedures, and clear sanctions.
Safe Spaces Act (R.A. 11313)
- Extends to workplaces (including online spaces). Mandates policies, training, and mechanisms against gender-based sexual harassment and related misconduct (e.g., unwanted advances, lewd messages).
Data Privacy Act (R.A. 10173)
- Any collection or processing of data about employee relationships (e.g., disclosure forms) must be lawful, necessary, and proportional.
- Employers must issue a privacy notice, minimize data, secure it, and limit access.
E-Commerce & Electronic Evidence
- Electronic consents, disclosures, and investigation records are generally valid if properly executed and preserved.
Other relevant statutes & principles
- Anti-Violence Against Women and Their Children (R.A. 9262): may intersect with workplace safety plans when intimate partners work together.
- Telecommuting Act (R.A. 11165): workplace rules apply to remote work; online harassment is covered.
- Local ordinances & CBAs: may add protections; align the policy with any collective bargaining agreement and local regulations.
- Equal treatment: Adopt non-discrimination clauses (including SOGIE) to avoid unequal application of relationship rules.

II. Why Have a Policy?

Prevent harassment and abuse of authority (especially in supervisor–subordinate relationships).
Manage conflicts of interest (hiring, performance ratings, promotions, pay).
Protect confidentiality (access to sensitive information).
Preserve trust and morale (avoid favoritism and retaliation).
Clarify boundaries (off-duty conduct that affects work still matters).

III. Scope & Definitions

Covered relationships: dating/romantic, domestic partnerships, marriage, relatives up to a specified degree (e.g., 2nd degree of consanguinity/affinity), and other close personal relationships that may create bias or perceived bias.
Conflicts of interest: any situation where personal ties could influence—or appear to influence—work decisions.
Power imbalance: where one party has direct or indirect influence over the other’s employment terms (hiring, scheduling, evaluation, pay, discipline, project assignments).

IV. Core Policy Positions (What Works in PH Practice)

Consenting Adult Relationships Are Not Prohibited per se
- The policy should not ban all relationships. Instead, require prompt disclosure when a relationship creates or could create a conflict, power imbalance, or risk of harassment.
Supervisor–Subordinate Relationships
- Strongly discourage; if they arise, mandatory disclosure and management of conflict (e.g., change in reporting line, recusal from evaluations, approval workflows, or transfer—without demoting or penalizing either party).
- If non-disclosure persists despite clear rules, discipline for policy violation (not for the relationship itself).
Anti-Nepotism / Preferential Treatment
- Reasonable restrictions on hiring, placement, or direct supervision of relatives/partners in the same chain of command.
- Alternative: allow co-employment but prohibit influence on each other’s employment decisions; require recusals.
Vendor/Client Relationships
- Require disclosure where an employee’s partner/relative works for a vendor, customer, or regulator tied to the employee’s role. Implement firewalls or reassignments to avoid self-dealing.
Public Conduct & Workplace Decorum
- Prohibit public displays of affection that disrupt work; prohibit sexualized or inappropriate communications on company systems; cover online behavior (work chats, email, collaboration tools).
- Emphasize informed consent and respectful boundaries at all times.
No Retaliation or Favoritism
- Retaliation for reporting concerns is prohibited. Favoritism (assignments, overtime, bonuses) deriving from a relationship is a disciplinable offense.
Uniform Application & Non-Discrimination
- Apply the same rules regardless of gender, SOGIE, marital status, or rank. Inconsistent enforcement invites claims.

V. Disclosure & Data Privacy Compliance

A. When to Disclose

At the onset of a relationship that creates or could create a conflict (e.g., same team, supervisory link, access to each other’s records).
Upon change in circumstances (e.g., transfer, promotion, vendor engagement).

B. How to Disclose

Short form to HR/Ethics: names, roles, reporting lines, potential overlap; no intimate details.
Affirm whether there is direct supervision or decision-making authority; commit to comply with mitigations.

C. Privacy-by-Design

Keep disclosures confidential, shared only with those who need to know (HR, Legal, Ethics).
Limit data to what is necessary; time-bound retention (e.g., retain while the conflict exists + limited archive period).
Provide a privacy notice explaining purpose, legal bases, retention, and rights of employees (access/correction/objection).

VI. Investigations, Grievances, and Safety

Channels
- Provide multiple reporting avenues (HR, Ethics, SH committee under R.A. 7877, hotline, email). Allow anonymous or confidential reporting where feasible.
Process
- Intake and triage → impartial fact-finding → opportunity to be heard for all involved → findings → proportionate action → communicate outcome (to the extent allowed by privacy law).
- Preserve digital evidence (emails, chats, logs). Use need-to-know access.
Interim Measures
- Temporary separation of parties, schedule changes, or work-from-home arrangements during investigation, without prejudging the outcome.
Safety & Protective Orders
- Respect protection orders (e.g., under R.A. 9262). Coordinate with Legal/HR for safety planning and compliance with court directives.

VII. Discipline & Due Process

Grounds: failure to disclose a conflict; quid pro quo; favoritism; retaliation; harassment; breach of confidentiality; misuse of company systems; insubordination regarding mitigation measures.
Procedure:
1. First Notice (charge sheet with facts and policy basis; time to respond);
2. Hearing or opportunity to be heard;
3. Second Notice (reasoned decision).
Sanctions: written warning, performance conditions, reassignment, suspension, or dismissal proportionate to gravity and past record.
Consistency: similar cases should receive similar sanctions to avoid claims of discrimination or unfair labor practice.

VIII. Training & Culture

Annual anti-sexual harassment and Safe Spaces training (include digital etiquette, consent, power dynamics).
Manager training on handling disclosures, recusal, and avoiding favoritism.
Bystander intervention modules to empower early, respectful intervention.

IX. Remote/Hybrid & Digital Conduct

Relationships still require disclosure if they create conflicts across virtual teams.
Apply the policy to collaboration tools (chat, video, email). Prohibit lewd or suggestive content on company channels.
Make clear the limits of monitoring (lawful, proportionate, notice given) consistent with the Data Privacy Act; avoid intrusive surveillance.

X. Unionized Environments & CBAs

Align policy with collective bargaining agreements.
Consult with the union for change management; ensure that grievance procedures dovetail with policy investigations.
Where CBAs specify progressive discipline, follow those laddered penalties unless the offense warrants a higher sanction consistent with just cause.

XI. Practical Governance: Who Does What

HR: policy ownership, training, disclosures, records, privacy notices.
Legal/Ethics: advice on conflicts, investigations, sanctions, and compliance.
Managers: early identification, recusal, culture-building, consistent enforcement.
Employees: disclose conflicts, respect boundaries, cooperate in investigations.

XII. Sample Policy (Model Clauses)

1. Purpose The Company promotes a respectful workplace free from harassment and conflicts of interest. This policy governs employee romantic, familial, and close personal relationships that may impact work.

2. Coverage All employees (regular, probationary, fixed-term, project-based, interns, contractors assigned on-site).

3. Definitions

Personal Relationship—romantic/dating, cohabitation, marriage, or familial ties up to 2nd degree; or any relationship that could reasonably affect impartiality.

Power Imbalance—direct or indirect authority over employment terms.

4. General Rule Consensual relationships are not prohibited. However, employees must avoid conflicts and disclose relationships that involve a power imbalance or potential conflict.

5. Mandatory Disclosure Employees in a personal relationship must disclose to HR within 5 working days if (a) one supervises or influences the other; (b) they work on the same team with shared approvals; or (c) either interacts with vendors/clients employing the other party. The disclosure includes only necessary data (names, roles, reporting lines).

6. Mitigation Measures HR may implement: change of reporting lines; recusal from decisions; adjusted approvals; or reassignment, with no loss of pay or rank except for business necessity.

7. Prohibited Conduct

Sexual harassment, quid pro quo, or hostile environment.

Favoritism or retaliation arising from a relationship.

Failure to disclose when required; interference with an investigation.

Inappropriate conduct at work or on company systems.

8. Investigations & Confidentiality Reports may be filed with HR/Ethics/SH Committee. The Company ensures impartial investigation, confidentiality consistent with law, and no retaliation.

9. Data Privacy Disclosures will be processed per the Company’s Employee Privacy Notice, with access limited to HR/Legal and retained only as necessary.

10. Discipline Violations may lead to sanctions up to dismissal, following notice–hearing–decision requirements.

11. Training Mandatory annual training on anti-sexual harassment, Safe Spaces, and respectful workplace conduct.

12. Effectivity & Review This policy takes effect on [date] and will be reviewed annually or upon changes in law.

XIII. Frequently Asked Questions

1) Can we ban all romantic relationships? Not advisable. A blanket ban is hard to justify and enforce, risks privacy violations, and can be discriminatory. Focus on disclosure, conflict management, and harassment prevention.

2) Are “love contracts” legal? A consensual relationship agreement can be used to confirm that both parties enter voluntarily, understand boundaries, and agree to conflict mitigations. Keep it voluntary, narrowly tailored, and not a waiver of statutory rights.

3) Must we transfer someone if two teammates start dating? Not always. Consider recusals and approval firewalls first. Transfer only if conflicts are unmanageable.

4) What if they refuse to disclose? Discipline for policy violation (failure to disclose), not for the mere existence of a relationship—apply proportionately and consistently.

5) Can we monitor chats to police relationships? Avoid intrusive surveillance. If monitoring is necessary for security/compliance, ensure lawful basis, proportionality, notice, and safeguards under the Data Privacy Act.

XIV. Implementation Checklist

Draft policy with HR–Legal–Operations–IT input; align with CBA.
Issue employee privacy notice covering relationship disclosures.
Set up disclosure form and conflict-mitigation workflow.
Constitute/refresh SH & Safe Spaces committees; train investigators.
Roll out training (annual refreshers; manager-specific modules).
Establish conflict registers, recusal records, and audit trails.
Communicate no-retaliation and whistleblower protections.
Review annually; document enforcement for consistency.

Bottom Line

A well-designed policy respects private life while safeguarding the workplace. Center it on disclosure, fairness, and safety; enforce with due process; handle data with privacy by design; and train people to spot power imbalances early. Done right, you’ll reduce risk, protect employees, and sustain a culture of trust—without policing romance.