- BP demands that employees disclose intimate relationships with colleagues or be fired
- Employees were given three months to disclose any issues
- The rules follow the firing of Bernard Looney for not disclosing past relationships
BP risks being hit with lawsuits from workers after serious concerns were raised about its crackdown on workplace relations.
The oil giant revealed last week that it requires all staff to disclose any intimate relationships with colleagues – including those dating back to 2021 – or face the sack.
BP’s 90,000 employees, 4,500 of whom are senior managers, have been given three months to disclose any matters.
Previously, they were required to disclose relationships with colleagues only in the event of a potential conflict of interest, for example if one associate was the manager of another.
The rules follow the dismissal of boss Bernard Looney in December for serious misconduct for failing to fully disclose his past relationships to the board.
Crackdown: Top City’s lawyers say demand for relationship information smacks of Stasi
The scandal rocked the 115-year-old company and raised questions not only about Looney’s workplaces, but also about the company’s culture.
The Irish businessman was stripped of £32m in salary and bonuses following his dismissal.
Looney was notorious for promoting female staff, but there were allegations that he promoted women with whom he had previous secret relationships. The policy was met with an uproar. Employees are particularly upset by the retrospective demand for details of relationships as far back as three years.
According to one City source, it “created an awful lot of ill will”.
Employees feel the controversy surrounding Looney has “left problems,” the source added. Lawyers for Top City told The Mail on Sunday that retrieving information about Stasi-smelling relationships could be illegal and open the firm to litigation.
The lawyers said that applying the new rules to past negotiations was in fact a breach of the employment contract. There are also privacy concerns.
Hina Belitz, a partner at Excello Law, said: “I understand the forward-looking change to this policy, but there are many problems with looking back for information. That seems unreasonable.
“It goes back in history and exposes society to claims and unlimited compensation.”
One possible explanation for the change, according to City speculation, is that BP wants to know how and why certain managers were promoted over the past three years.
Belitz added: “It’s clear they want to see how many employees have been promoted through conflicts of interest.”
BP stands behind the policy changes, adding that a review of workplace relations rules is planned for this year. It was last updated in 2018. The new policy says: “Employees were previously required to disclose and record such relationships if they felt there might be a conflict of interest. They are now required to disclose intimate relationships at work, whether they believe they pose a conflict of interest or not.
“As a policy that forms part of BP’s Code of Ethics, failure to comply with this policy may result in disciplinary action.”
The firm confirmed that this could include layoffs.
Many companies require employees to disclose all workplace relationships. Last year, ITV drew up strict rules following the resignation of Phillip Schofield over a workplace affair. But lawyers said it was rare for multinational corporations to request so much past information. Joseph Lappin of Stewarts Law added: “I have never seen a retrospective policy like this implemented on such a scale. If BP is trying to restore trust between employers and employees, this is not the way to do it. A soft touch policy would be a much better option.”
The company said the updated rules would not affect new chief executive Murray Auchincloss’ relationship with BP colleague Julia Emanuele, chief operating officer of the lucrative oil trading division.
Auchincloss announced the relationship to the board in July 2020 when he was hired as chief financial officer. When he took over last September, the board confirmed that Auchincloss was in a “long-term relationship and his partner also works at BP”.
BP investor Jupiter Asset Management’s fund manager said: “Unfortunately, this is Looney’s legacy. He set the culture as CEO and now everyone is paying for it.”