RBC fires CFO Nadine Ahn: Relationships at work and employee rights

Royal Bank of Canada (RBC) recently made headlines by firing its Chief Financial Officer, Nadine Ahn, and another high-ranking executive, Ken Mason, Vice-President and Head of Capital and Term Funding.

This bold move came after an investigation into a secret personal relationship between Ahn and Mason, which was found to improperly influence promotions and salary increases, breaking the bank’s rules.

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Investigation and ethical aspects

• Secret relationships at work: The heart of the issue is the hidden relationship between Ahn and Mason. When people in different levels of power get involved romantically, it can lead to unfair advantages and questions about whether the workplace is really fair and open.
• Unfair advantages: The investigation showed that Ahn used her power to give Mason promotions and raises that he might not have earned otherwise. This kind of behaviour goes against RBC’s commitment to ethical conduct and fair treatment for all employees.
• Quick and thorough investigation: RBC didn’t waste time dealing with the complaint. By involving both internal teams and external legal experts, the bank showed that it’s serious about finding the truth and making sure everyone follows the rules.
• Laws and rules for banks: This situation didn’t just break RBC’s internal rules—it also touches on bigger legal and regulatory standards for how banks need to operate transparently and ethically. Regulators like the Office of the Superintendent of Financial Institutions (OSFI) are watching closely to make sure banks work in a way that’s honest and responsible.

The bigger picture

Appointing Katherine Gibson as the interim CFO shows RBC is acting quickly to maintain stability and continue its operations without disruption.

This decision also reassures customers and employees that RBC takes any breach of conduct seriously.

• Not the first time: This isn’t a new problem for RBC. Past issues with undisclosed relationships have led to similar actions, highlighting the ongoing challenge banks face in managing personal relationships within the workplace. It stresses the importance of clear policies and systems to report and manage unethical behaviour.
• Impact beyond RBC: Such high-profile terminations have wider effects, influencing how people see RBC and the banking sector as a whole. It underlines the importance of clear, honest communication and the need for banks to strictly follow both their own rules and broader regulations to keep trust and integrity intact.

Are romantic relationships at work illegal?

The news about Ahn being involved in a personal relationship with another bank executive has sparked discussions around the rules of workplace romance, especially when it involves employees at different levels of power.

In places like Ontario, Alberta and B.C., there are no laws that prevent employees from dating each other, no matter their positions in the company. This means that, legally speaking, it’s okay for co-workers to have romantic or intimate relationships.

However, in professional settings, including those at financial institutions like RBC, it’s crucial to keep a fair balance of power among all employees.

This balance helps ensure that decisions, promotions, and pay raises are made fairly and without bias.

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While no laws in Canada forbid relationships between staff members, it’s generally seen as risky for a boss to date someone they oversee.

This is because of the power difference between a manager and their employee. Such a difference makes it hard to tell if the relationship is truly voluntary, as the senior person has a lot of influence over the other’s job and career.

WATCH: Employment lawyer Jon Pinkus spoke to CTV News about Toronto Mayor John Tory’s resignation and the possible repercussions of workplace relationships.

Can companies ban workplace relationships?

The short answer is yes. Employers can choose to ban staff from forming romantic relationships with co-workers in an effort to protect themselves from legal liabilities.

However, this approach is considered outdated and potentially harmful to the company for two reasons:

• The business may lose talented employees who are forced to choose between their job and their workplace relationship
• Employees may not report non-consensual relationships out of fear that they could lose their job

Instead of banning office dating, a better solution for employers is to implement workplace dating policies that address intimate relationships between superiors and subordinates — or those that could cause conflicts of interest.

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Can I be fired for dating a co-worker?

Non-unionized employees in Canada can be fired for having a romantic relationship with a co-worker.

This would be considered a termination without cause. The laid off worker would be entitled to a full severance package, which can be as much as 24 month’s pay, depending on various factors.

However, employers should be careful about dismissing a staff member over a workplace relationship.

Instead, companies can:

• Take less dramatic measures like a written warning or paid suspension
• Find accommodations that work for everyone involved, which could include separating the employees while at the office so they don’t directly work under one another

It’s very unlikely that a company can fire someone “for cause” – or without severance pay – if their workplace relationship is in breach of policy.

This type of dismissal is reserved for the worst kinds of workplace offences, such as serious insubordination, theft or assault.

If the consensual relationship is a serious conflict of interest, and it’s damaging the employer’s business interests or reputation, then the company might have grounds to terminate a worker for cause.

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.