Nestle CEO dismissed over “undisclosed romantic relationship”

Nestle has dismissed its chief executive, Laurent Freixe, after 40 years at the company and 1 year in the role, as he failed to disclose a “romantic relationship”. This relationship was with a direct subordinate which reportedly breach Nestle’s code of business conduct. 

Mr Freixe’s relationship came to light through an anonymous complaint to Nestle’s internal hotline, also known as their whistleblowing channel, which allows employees and external stakeholders to report any breaches of Nestle’s principles such as harassment or misconduct.  

The concern was first about Mr Freixe’s relationship with an employee was first raised last year and an internal investigation was conducted into Mr Freixe’s relationship. The internal investigation found the claims to be unsubstantiated. 

A second investigation was conducted in Mr Freixe’s relationship when further complaints were raised which suggested favouritism. This investigation was done with the support of independent counsel. A source has reported that this complaint was upheld and Mr Freixe was dismissed immediately following the investigation.

If a workplace relationship is reported, employers should act sensitively, lawfully and proportionately. The focus should be on managing any risks within the workplace, such as harassment or conflicts of interest, whilst also protecting employees’ right to privacy.  

Employers should also consider their duties under the Equality Act 2010 and should not discriminate against employees on the grounds of a protected characteristic, such as sex or sexual orientation. 

Employers are also required to follow fair procedures under the ACAS Code of Practice on Disciplinary and Grievance Procedures, especially if any formal action is required. This will ensure that there has been a fair and consistent approach with all employees. 

It is vital that employers consider the new laws on worker protection which came into effect on 26 October 2024. This introduced a new legal duty for employers to protect workers from third-party sexual harassment. Under these new provisions, employers are now required to take “all reasonable steps” to prevent sexual harassment in the workplace, meaning that employers will be liable for the actions of third parties, which includes patients, suppliers and anyone else that comes into the practice. 

Employers should be taking action to prevent sexual harassment and ensure that a fair process is followed if any concerns are raised within the workplace. If the Employment Tribunal finds that an employer has breached this duty, they will be able to increase compensation by up to 25%. 

At Buxton Coates Solicitors, we are able to provide you with specific advice on what to do if a relationship is reported within the workplace and we have also created a Worker Protection Pack designed to assist you in meeting your statutory duties under the new legislation. Please contact our Employment Team on 0330 088 2275 to see how we are able to assist you.