RBC CFO fired due to workplace relationship: Lior Samfiru discusses with HR Reporter

Interview Summary

The CFO of RBC, Nadine Ahn was recently terminated from her employment after an investigation was conducted and it was discovered that she had been engaging in a secret relationship with the company’s Vice President and Head of Capital and Term Funding. The investigation deemed this relationship had led to unfair promotions and raises. What are employee rights regarding workplace relationships? Can employers implement policies forbidding relationships among staff?

Lior Samfiru, a Toronto employment lawyer and Partner at Samfiru Tumarkin LLP spoke with HR Reporter’s Sarah Dobson on workplace relationships and the terminations of employment for senior executives.

Interview Notes

• Reason for transparency and misconduct: Samfiru explained that RBC’s decision to reveal the reason behind the termination as well as the investigation’s findings could have been about sending a message. “In some cases, I think an organization wants to send a strong message, especially if the organization itself feels that it has clean hands, that it did things the right way, it wasn’t complicit and wasn’t involved in any form of misconduct. And if the organization has nothing to hide, it could take that opportunity to send that strong message to its clients, to the outside world and certainly to its employees.”
• Disclosing relationships in the workplace: Employees need to be honest, particularly if they are in senior management positions. “When you’re in a position to make important decisions, you’re counted on to make those decisions objectively to the benefit of the organization. And if you’re putting yourself in a position where you are now, potentially, in conflict, where your personal interests may contravene or may conflict the interest of the organization, that’s a problem,” Samfiru stated.
• Investigations in the workplace: Samfiru explained the importance of conducting adequate investigations in the workplace if there are allegations of misconduct. “It’s not just talking to the individuals in question — you’d want to speak to anyone who may or may not have may have information or may potentially have relevant information. So you want that to be as broad as possible. You also want to understand why they’re doing this investigation: ‘Is this an isolated scenario, or have these issues been happening under our noses with other people and other circumstances?’
• Terminations for cause: Terminations for cause are extremely difficult to prove and in this particular instance, RBC’s CFO would have been forefeiting a significant severance package. “If the financial institution did take this route, it would have to show that Ahn acted in a manner that contradicted her obligations, that she gave preferential treatment, and that she didn’t act in the best interest of the organization,” said Samfiru.“If they can establish that that can be cause.”

Related Resources

For further insights and discussions related to workplace relationships and their repercussions, explore the following resources:

• Toronto Mayor resigns over relationship with staffer
• Terminations for cause
• Severance pay for C-suite executives