Nestlé has dismissed chief executive Laurent Freixe with immediate effect after an investigation into an “undisclosed romantic relationship”, the company announced on Monday (1 September).
The Swiss consumer goods company said that the dismissal of Freixe, who was promoted to CEO last August after almost 40 years with Nestlé, came after an investigation into a relationship with a subordinate that breached its code of business conduct.
In a statement from Nestlé, chair Paul Bulcke said: “This was a necessary decision. Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service at Nestlé.”
The board ordered an investigation overseen by Bulcke and lead independent director, Pablo Isla, with the support of independent outside counsel.
Michelle Last, employment partner at Keystone Law, told HR magazine: “HR departments are advised to establish clear, written relationship policies that set out what should happen when romantic relationships develop between colleagues.”
Without such policies, it becomes much harder to take appropriate action when issues arise, Last explained: “While employers cannot prevent romantic relationships entirely, as employees have the right to a private life under the Human Rights Act 1998, they can legitimately require disclosure when such relationships could impact the workplace.”
She continued: “If an employer does not have an appropriate policy in place, they may wish to first hold an investigatory...
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