Thursday, March 4, 2010

Love Contract: Prevention is better the cure

At the first instance when I went through the case study, I wondered that do such contracts really exist, but when I further pondered upon the case I actually came across some facts that truly justified the manager’s move of making the couple sign the love contract. Not many might know this, but it is a fact that there has been a growing trend in the US companies for having their employees signs such contract that in a long run might not just safeguard the employee’s interest but also help the company as well.

Dating often begins with a lighter mood and the people involved think that in no way their relationship is going to affect them or for that matter to the entire society, little do they know that such relationship often ends up with harassments, retaliation claims and court cases. And in such situations what really help is such contracts and similar tools that typically affirms beforehand that both the party were romantically involved and their relationship would in no way affect the company and their individual performance. The situations become more intense if the couple involved is in a direct reporting relationship. And so it is strictly advised not to date the boss. One such case is that of the CEO of Boeing Co, Mr. Harry C. Stonecipher who was fired in 2005 by the board of directors when they found out that he was involved with his subordinate. Questions were raised on his ability to lead going forward even after having a rich set of experience. Not just him there were many such cases where performance deteriorated as and when one got involved into relationship within the company.

Now coming to the case of Intermediaries Technology Ltd., similar such case occurred when the GM (HR) spotted 2 of its employee involved in a romantic relationship and decided to take precautionary measures by forcing the couple to sign the love contract so that in future the company doesn’t face the issue of the lost love litigation. Now from the employee’s perspective it might seem in the first instance that the employer is invading into their personal lives and signing such contract would bring out their affair in open. Mr. Pritam Singh who was about to be promoted was given the ultimatum that if he didn’t sign the contract his promotion as well as his colleague Ms. Jagruti’s job would be at stake. It was pretty obvious they didn’t want to be open about their relationship but now they were left with no choice but to sign the contract. And that fact that the employer tried his best that Pritam sign the contract without first reading it clearly shows that the GM (HR) was embarrassed of such contracts but earnestly wanted Pritam to sign it without raising any questions or taking any steps with respect to it. Probably these were the reason one might hesitate to sign such contract. But why in the first place would the GM want to do that? This question can be basically answered by keeping into account the reasons mentioned above that why would any firm wants it employees involved in such relationship to sign such contracts. Such relationships often create awkward situations and claims of favoritism, break ups can be even harder – on the employer. So the GM (HR) took the right step by drafting such contract.

As have already been mentioned by many participants “Love Contract” is basically a mutual agreement between the 2 parties involved that the relationship they are into is mutually agreeable and unrelated to the company. It also clearly mentions that incase of break ups through binding arbitrations and not through lawsuits and that both the party are aware of the policy against sexual harassment and they know how to use it. Such precautionary measure ensures that the firm or any individual doesn’t run into trouble in case of relationship disputes. The contract also demands that the couple behave professionally in the office premises there should be no public display of affection.

There has been many surveys conducted and most of it says that majority of the people in their lifetime career have some or the other way involved in such relationship and many a times have ran into trouble. Such contracts would safeguard such employees’ interest and the company as a whole. One solution to the troubled relationship problem and when there is a case that no such contract is signed, what the employer can do is to place the 2 individuals in 2 separate departments so that they stay away from each other for maximum time. There is yet another technique. Companies like BBC ask its employees to inform a nominated officer of any romantic relationship with subordinates, failing which can even lead to the termination of the employment term.

These were some of the steps other than Love contract, but in either case they aim at prohibiting employees in the same work place to get romantically involved and encouraging them to behave more professionally and not let such relations hamper their work life at all. I am sure that every employer would want its employee to follow this so that their work doesn’t get hampered because “Prevention is always better than Cure”.

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