The National Crime Agency has issued a new Red Alert warning UK businesses on the common techniques suspected to be in use to evade sanctions on the export of high-risk goods, which Russia is using on the battlefield in Ukraine. These ‘high-risk goods’ refers to Western items critical to Russian weapons systems and its military development. The Red Alert lists the common risk indicators in this area that the regulated sector should be aware of.

The Financial Reporting Council has issued the first in-depth assessment of the quality of reporting from private companies who have chosen to follow the Wates Principles. The report, which was conducted with the University of Essex, shows that the Wates Principles are the most widely adopted corporate governance code used by large private companies.   The research shows that companies are grasping the spirit of the Wates Principles in their governance reporting. They are using the principles as a tool for self-reflection and improvement, and seeing the yearly governance reporting as an opportunity, not a burden. This research also includes examples of good reporting and acknowledges that it is too early to draw too many conclusions as most companies were in their first cycle of reporting. The financial sector was the biggest adopter of the Wates Principles.

IAASA has published a Consultation paper on its proposal to adopt a Sustainability Assurance Standard in Ireland. The effective date of the standard will be for financial years starting on or after 1 January 2024.  This is required by the European Corporate Sustainability Directive (CSRD). The European Commission has indicated that it intends to adopt a European assurance standard by October 2026, at which time that standard will apply in Ireland. In the absence of a mandatory standard in Ireland, assurance providers could voluntarily perform their work in accordance with an assurance standard such as ISSA 5000 or ISAE 3000. IAASA considers that it is in the public interest that it adopts a single sustainability assurance standard, to promote consistency in approach by assurance providers, provide clarity to users as to the level of assurance being provided, ensure an adequate standard of assurance work and assist IAASA and the recognised accountancy bodies in their regulatory approaches. IAASA has identified three possible options for a sustainability assurance standard in Ireland and is now seeking stakeholders’ views on the appropriate standard for sustainability assurance in Ireland.  These are: the proposed International Standard on Sustainability Assurance 5000 (ISSA 5000),  the extant International Standard on Assurance Engagements 3000 (ISAE 3000) or a local standard. Each of these options is set out in the consultation paper. The consultation paper is available here. Stakeholders and interested parties are invited to provide your response using the response template available on this link or email your response to submissions@iaasa.ie by 19 April 2024.

The Credit Union (Amendment) Act 2023 ("2023 Act") was signed into law in December 2023 and is being commenced in phases. See statutory instrument No. 57 of 2024. Below we set out some provisions of the amending legislation which may be of interest to our members. Provisions relating to the accounts. The requirement that the annual accounts be signed by a member of the board oversight committee is removed and they are to be signed by the manager of the credit union and member of the board of directors acting on behalf of the board (commences 8 April 2024). Section 6 of Credit Union Act 1997 ("1997 Act") is amended in relation to common bond provisions. It now provides that where a credit union has no website, the credit union must include in its annual accounts a description of the common bond or where the common bond is or includes “residing or being employed in a particular locality “a map on which the locality concerned is marked (commences 8 April 2024). Some changes are made to allow for electronic delivery of information including a provision permitting electronic delivery of notice of general meetings to the auditor and a new provision 188A has been added allowing distribution, subject to the conditions in the new section, of information including annual accounts by electronic means (both commence 22 February 2024). Board of directors Changes are made in relation to the board of directors of a credit union including one whereby a credit union manager can be appointed to the board of directors (new section 63A added to 1997 Act and commences 8 April 2024). Environmental social and governance policy has now been included as a policy for the board to approve, review and update at least every 3 years. This is by virtue of an amendment to section 55 of the 1997 Act where the board has obligations to approve review and update plans policies and procedures. These obligations were annual but with the commencement of the 2023 Act the obligation will be every 3 years (no commencement date yet). There will be a requirement for the credit union to consider gender in the identification of prospective candidates for appointment to the board of directors (commences 8 April 2024). The provision for approval of expenses is changed from requiring approval of a majority of the board of directors to approval by at least 2 directors (excluding a director whose expenses are to be included) (commences 8 April 2024). In section 32 of the 1997 Act which deals with restrictions on withdrawal of shares/deposits, a change is made whereby a decision (about withdrawing savings) does not have to be mandatorily approved by the board (commences 8 April 2024). There are changes to the provisions on approval of loans in section 36 of the 1997 Act. The approval of two thirds of the special committee is deleted and approval of the board of directors is substituted (commences 8 April 2024).   Corporate credit unions The 2023 Act provides for existence of corporate credit unions. New provisions have amended section 6 of the 1997 Act. A new schedule 6 is now included in 1997 Act setting out matters to be provided for in the rules of a corporate credit union including provision for the audit of accounts by one or more auditors appointed by the credit union. This is consistent with the requirements for non-corporate credit unions. By amendment of section 81 of the 1997 Act, the quorum for general meetings of corporate credit unions is two members. There is no commencement date yet for the provisions for corporate credit unions. Other changes Section 35 of the 1997 Act is amended so that a credit union can now agree to participate in a loan to a member of another credit union (the amendments are partially commenced on 8 April 2024). Section 38 of the 1997 Act is amended so that on commencement of the provisions of the 2023 Act, the maximum interest rate that may be charged on loans made by a credit union to its members will be set by the Minister (for Finance) (commences 8 April 2024). Under the 2023 Act, the form of the annual compliance statement a credit union has to make to the Central Bank of Ireland (CBI) can be prescribed by CBI (commences 8 April 2024). This information is provided as resources and information only and nothing in these pages purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the pages. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of these pages, we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained in these pages.             

Next week on Wednesday 6 March, Chancellor Jeremy Hunt will deliver the Spring Budget 2024. The Institute will be conducting its usual analysis of the tax measures contained in the Budget and will issue a newsletter to members on Wednesday afternoon with the key tax highlights. This will be followed by more detailed analysis in Chartered Accountants Tax News on Monday 11 March.  As the Budget is taking place in an election year, it is expected that some tax cuts will feature, however this is likely to be tempered by the recent news that the UK tipped into recession in the last quarter of 2023. 

Since we reported last week on HMRC changing the income tax treatment of certain double cab pick-ups from 1 July 2024, the UK Government has announced that after listening to the views of farmers and the motoring industry, there will be no change in treatment, hence HMRC has withdrawn the revised guidance. This week updated guidance has been published on the marriage allowance with changes made to the sections on ‘how to apply’ and ‘how to cancel’.   HMRC is consulting on updated guidance for R&D tax relief and is holding a series of webinars on the relief. The 2024/25 rates and thresholds for employers have been published and the members of HMRC’s Joint Vat Consultative Committee have received notification that Revenue and Customs Brief 2/23 is being withdrawn. And finally, the latest Agent update: issue 117 is available as is the most recent News and Information Bulletin from HMRC.   R&D tax relief   HMRC has published draft guidance for consultation on the changes to R&D tax relief in relation to overseas expenditure and contracted-out R&D both of which take effect from 1 April 2024. The consultation closes on 1 March 2024. Readers are reminded that the new merged R&D tax relief regime also commences from 1 April 2024.  HMRC is also running a series of webinars on R&D tax relief which will cover the following:-  what qualifies as R&D;  how to claim correctly; and  what the new merged scheme entails.   The webinars will also include information on the enhanced support available for R&D intensive companies via the higher payable tax credit.  Register for the first webinar which takes place tomorrow, Tuesday 27 February, at: https://register.gotowebinar.com/rt/2324882589787388000?source=February-HMRC-External.  Withdrawal of Revenue and Customs Brief 2/23   Revenue and Customs Brief 2/23 “VAT and value shifting consultation update – apportionment of consideration” which was published in March 2023, is being withdrawn as HMRC now consider that the most effective way to address valuation concerns is to provide improved guidance, rather than legislative change. Amendments have therefore been made to the relevant guidance at section 31 of Notice 700 and HMRC manual section VATVAL3000.  In addition, a new Guideline for Compliance (2/2023) has been published which outlines HMRCs’ recommended approach to apportionment of consideration and approaches that in HMRC’s opinion increase or lower tax compliance risk. Guideline for Compliance 2/2023 can be accessed via the link in HMRC manual at VATVAL3700.   Latest Agent Update  Agent Update: issue 117 is available now. Get the latest guidance and information including:-  National Insurance contributions rates reminder;  HMRC and the Border Force are publishing a new Illicit Tobacco Strategy;  HMRC’s Agent Forum – important information for all users;  Registering for the new digital system that manages 'Union goods'; and  The Corporate Interest Restriction – an update from HMRC. 

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The most recent Trader Support Service bulletin is also available. HMRC has sent a further email reminder about changes to how goods are imported into Great Britain from Ireland as a result of the first phase of implementation of new import controls from 31 January 2024. And finally, HMRC has confirmed that the VAT Import One Stop Shop (“IOSS”) scheme in Northern Ireland will open for registrations from 1 March 2024.  VAT IOSS  We previously reported in our EU exit corner that HMRC had confirmed to Chartered Accountants Ireland that the delivery of the VAT IOSS in Northern Ireland (“NI”) would commence from 1 March 2024.   IOSS is an optional VAT accounting scheme that VAT registered businesses can use when they import low value goods (non-excise goods with a consignment value of £135 or less) from countries outside the EU and NI, to consumers in the EU, NI, or both. HMRC has confirmed that as planned, the scheme will be available for direct registrations in NI from 1 March 2024  Last week, HMRC published guidance on the scheme and the changes on how to report VAT on sales of low value goods that are located in Great Britain at the point of sale to consumers in Northern Ireland.   Find more information on GOV.UK at: - https://www.gov.uk/government/collections/vat-import-one-stop-shop-scheme.  Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:  Designated export place (DEP) codes for Data Element 5/23 of the Customs Declaration Service;  Notices made under the Customs (Northern Ireland) (EU Exit) Regulations 2020;  Notices made under the Customs (Import Duty) (EU Exit) Regulations 2018;  Apply to use simplified declarations for imports you entered in your records without authorisation;  Making a simplified frontier declaration;  Check how to move goods through ports that use the Goods Vehicle Movement Service;  Manually arrive your goods in the UK;  Making a full import declaration; and  Trading and moving goods in and out of Northern Ireland. 

HMRC is holding its Annual Stakeholder Conference later this week in London which the Institute will be represented at. The theme of this year’s conference is “Today, Tomorrow, Together”. The Institute will be reporting key themes and issues discussed at the conference in next Monday’s edition of Chartered Accountants Tax News. You can read about last year’s conference in a news item.

This month’s tidbits cover the updated publication of HMRC’s organisation structure and the most recent newsletters and bulletins in several areas. Updated information is available on HMRC’s organisation structure:- Senior posts in HMRC's organisation structure, Summary of junior posts in HMRC's organisation structure, and HMRC organisation information and supporting datasets; Several newsletters and bulletins across a range of areas have recently been published as follows:- Employer Bulletin: February 2024, Alcohol Bulletin, Tobacco Bulletin, Pension schemes newsletter 156 ― February 2024, and Lifetime allowance guidance newsletter — February 2024;  HMRC has updated its guidance on what will happen if you do not pay your tax bill and  the HMRC tax debt strategy has been published which sets out how HMRC intends to improve the management of tax debt from 2023/24 onwards;  The following factsheets have been updated:- Compliance checks: penalties for failure to notify — CC/FS11 and Compliance checks: third party information notices — promoters of tax avoidance schemes — CC/FS74  A range of publications relevant to agents have been updated:- Create an agent services account, Find out how to register as a professional tax agent with HMRC, How to choose a tax agent, HMRC email updates and webinars for tax agents and advisers, Change or remove your tax agent's authorisation and Authorise a tax agent (64-8); and  The following documents have been updated:- Appeals reviews and tribunals guidance, Check if an email you've received from HMRC is genuine, Sign in to your HMRC business tax account, Receive Income Tax or PAYE repayments on behalf of others, Send an Income Tax relief claim for job expenses by post, Named tax avoidance schemes, promoters, enablers and suppliers, Tax support for overseas businesses investing in the UK, Set up as self-employed (a 'sole trader'): step by step, Apply for a certificate to confirm you pay UK National Insurance when working in 2 or more countries (CA8421), Negligible value claims and agreements, Changes in your annual allowance following the public service pensions remedy, and Check if your client has been affected by the public service pensions remedy.

HMRC’s latest schedule of live and recorded webinars for tax agents is available for booking. Spaces are limited, so take a look now and save your place. 

Do you use HMRC online services? Don’t be caught out by the planned downtime to some services. HMRC are warning about the non-availability of specific services on the HMRC website, a range of services are impacted. Check the relevant page for information on planned downtime.  

Director-General Gerassimos Thomas has published an opinion piece on the Carbon Border Adjustment Mechanism (CBAM) and how carbon pricing supports the long-term investment needed for the green transition. In the article, he notes that since the introduction of the EU Emissions Trading System in 2005, there has been a 37 percent reduction in power and industrial emissions up to 2021, with EU GDP growing more than 50 percent in the same period. The CBAM is the next phase in the EU’s commitment to a greener, brighter future for Europe and its global trade partners.

The Bahamas, Belize, Seychelles, and Turks and Caicos Islands have all been removed from the EU list of non-cooperative jurisdictions, following agreement by Member States. While the Bahamas and Turks and Caicos Islands have been fully delisted, Belize and Seychelles have been moved from Annex I to Annex II (pending the results of a supplementary review). This is another important milestone in the Union’s ongoing efforts to promote tax transparency.

Check out the latest items on the Agent Forum. Remember, in order to view each item, you must be signed up and logged in. We also take this opportunity to remind you that HMRC is currently conducting an exercise in which it is asking members of the forum to confirm they wish to continue to as a registered user.   All agents, who are a member of a professional body, are invited to join HMRC’s Agent Forum. This dedicated Agent Forum is hosted in a private area within the HMRC’s Online Taxpayer Forum. You can interact with other agents and HMRC experts to discuss topical issues and processes. 

At a Special General Meeting held on Wednesday 21 February, members of Chartered Accountants Ireland voted to approve a resolution to amalgamate with CPA Ireland. Over 10,000 Institute members voted. The resolution was passed by a majority in accordance with the Institute's Bye-Laws, with 53.5% of votes cast in favour. Members of CPA Ireland also approved the amalgamation proposal at an Extraordinary General Meeting also held on Wednesday 21 February. Both Institutes will now begin to work collaboratively on the next steps required to create a single Irish based accountancy body, named Chartered Accountants Ireland, which will be the largest professional body on the island of Ireland. The Institute will keep members informed of progress throughout this process.

The Digital Services Act 2024 (“DS Irish Act”) was passed into law on 11 February 2024 and came into force from 17 February 2024.Please click here for a DETE press release giving more details of the DS Irish Act. The EU Regulation (“Regulation”) commonly referred to as the Digital Services Act applies in full in all Member States from 17 February 2024.The Regulation establishes a pioneering regulatory framework to protect EU users of digital services and their fundamental rights online.  While the Regulation has direct legal effect in EU Member States, it was necessary to have national legislation to implement those provisions of the Regulation that provide for the supervision and enforcement of those obligations. The DS Irish Act 2024 fulfils Ireland’s obligations in this regard. The DS Irish Act formally designates and empowers Coimisiún na Meán as the Irish Digital Services Coordinator and the Competition and Consumer Protection Commission as a competent authority for online marketplaces under the Regulation. When the DS Irish Act was published as a bill late last year it was clarified at the time in a press release from DETE that it was a technical bill, drafted to address specific obligations on Member States of the EU to give effect to the supervision and enforcement provisions of the Regulation. The bill did not add to or amend the obligations on online platforms under the Regulation. Those obligations have direct legal effect in all Member States of the EU and do not require any implementing measures in national law. This information is provided as resources and information only and nothing in these pages purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the pages. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of these pages, we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained in these pages.  

Effective leadership requires more than competence. Compassion can help to foster a culture of both success and well-being, writes Paul O’Donnell Challenged by the after-effects of a global pandemic, organisations continue to change rapidly and are conscious of the need for effective leadership and talent engagement. Research suggests that compassionate leadership can bring the best results, but does compassion have a place in the world of work? The evidence suggests yes, it does. Compassion in the workplace improves collaboration, humility, trust and loyalty. Leaders who display compassion are more likely to have and hold on to engaged, committed and motivated employees. While good to have, empathy is an emotion. Compassion is an emotion with intention. Employees often avoid taking risks at work or rocking the boat during challenging times. They might be hesitant to report errors, for example, to voice concerns, suggest new ideas or share feedback. Demonstrating compassion as a leader can create a workplace environment conducive to emotional well-being, making employees feel safe enough to take risks that might help them to succeed. Compassionate leadership can benefit the leader as much as those they lead. Data shows a strong link between the demonstration of compassion and career advancement. Compassionate leaders enjoy greater life satisfaction and self-esteem and are viewed as stronger and more capable by their employees. By taking care of your staff, you are also acting in your own interests. Compassion alone is not enough, however. For leadership to be effective, it must co-exist with good judgment. Kindness cannot come at the expense of competence. The leaders who achieve the best outcomes are those who understand what motivates their employees and how to manage them towards desired outcomes. Leadership is hard: it necessitates pushing agendas, sharing critical feedback and knowing when to say no. Practising compassion as a leader does not imply the absence of these responsibilities. Instead, it means carrying them out while being conscious of people’s feelings. As Hougaard and Carter put it: “Wise, compassionate leadership is the ability to do hard things in a human way.” Developing compassionate leadership A study showed that 91 percent of over 1,000 surveyed leaders see compassion as vital to leadership. Eighty percent indicated that they wanted to improve their own compassion but did not know how. Compassion is not an inherent characteristic, but it can be developed. There are several steps leaders can take to develop a more compassionate leadership style. Have more compassion for yourself Taking care of others means minding yourself as well. If you are overburdened and burnt out, you won’t be able to help anyone else. Self-compassion requires getting enough sleep, taking short breaks throughout the day and setting aside time for yourself away from work. It also means not being too hard on yourself, recognising your mistakes, reframing setbacks as learning experiences and moving forward confidently. Be aware of your intentions Learn to manage your intentions before you speak to others by aligning your core values with your actions. Get to know each member of your team to understand what drives them and makes them feel valued. Advocate for change Compassion can become integral in an organisation. As a leader, think about policies that may be put in place to support employee well-being. This is beneficial to your employees and can lessen the onus on you over time. Can compassion become a hindrance? If you have a well-developed sense of compassion, but feel it hinders your ability to lead, there are a few things you should consider. Honesty and transparency As a leader, it is your job to offer guidance, even when it may be difficult for an employee to hear. If you step around the issue to be kind, you risk failing to convey your expectations and the employee will neither understand nor benefit from your help. Empathy vs compassion If you find yourself taking on the emotional burdens of your employees, take a step back and remember that you will be most helpful to them through action. Use your feelings of empathy as a catalyst for compassion and take practical steps to exercise it. Compassionate leadership propels success A compassionate outlook enhances a leader’s skills, resulting in more productive and motivated employees. Empowerment through compassion enables leaders and their teams to achieve their utmost potential, ensuring the organisation’s future success. Paul O’Donnell is CEO of HRM Search Partners

Expectations on businesses to combat climate change have intensified. Dave O’Shaughnessy outlines how organisations can use artificial intelligence to reach sustainability goals Last month, the World Economic Forum reiterated the need for urgent action on climate change, which was also the core message from COP28. With the world poised at this make-or-break moment, societal and stakeholder expectations of the role of business in reducing the effects of climate change are at an all-time high. In a US Pew Research Centre Survey published last October, 52 percent of respondents said they believe large businesses and corporations can do "a lot" to reduce the effects of climate change. This suggests that the expectation has moved beyond businesses simply fulfilling their environmental, social and governance (ESG) responsibilities to the view that they should be focused on even greater change. This change – termed “regeneration” – calls for a reinvention of systems across an organisation, from business models to supply chains, to help drive a positive impact rather than simply avoiding a negative one. While this is certainly an important objective, many organisations are currently facing external and internal pressures, long-term planning challenges and reporting requirements that have grown in scope and complexity to even reach a stage of compliance and organisation, let alone regeneration. It’s here that artificial intelligence (AI) is a game-changer. By harnessing data and driving efficiency, it can help your organisation meet your most immediate sustainability goals: achieving carbon neutrality, reduction of water use, and meet Science Based Targets initiative (STBi) targets as well as the UN Sustainable Development goals (UNSDGs). At the same time, AI also frees up your people to consider the bigger, long-term regeneration opportunities that can change your organisation’s environmental impact. There are three ways AI can assist with and organisations sustainability goals, which are outlined below. One: Guidance on sustainability reporting standards New directives such as the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence (CSDD) mean companies face increasing reporting requirements. The high volume of reporting points and the interrelationships between regulatory reports and voluntary frameworks (Global Reporting Initiative (GRI), the Carbon Disclosure Project (CDP), and the Sustainability Accounting Standards Board) adds to the complexity of the task and requires organisations to be able to interpret complex policy documents in a short space of time. Unsurprisingly, many organisations are struggling with where to begin, unsure of how they fare compared to expectations and are confused by the multitude of requirements. As a result, they are unable to forge an action plan or identify potential problems. Generative AI can alleviate this concern. Its ability to analyse large volumes of documents (in this case, the reporting requirements and frameworks) in real-time and then to provide easy-to-understand explanations gives companies a clear starting point. It also cuts down on complicated, manual research time and ensures consistency in understanding and actions among staff. A chatbot is one means of achieving this. It can ingest all the legislation, directives, frameworks, and facts relevant to your company’s sustainability needs and then act as a “personal assistant” for any user questions. By combining knowledge from a vast number of resources, your organisation-specific chatbot can provide enhanced understanding on complex topics at speed, support decision-making, and even provide references so users can review the sources or answers for fact checking and traceability. Two: Actionable insights With the objective to halve emissions by 2030, companies must have a comprehensive and integrated net zero approach involving all aspects of their operations and value chain. But while this integrated approach is key to meeting targets, extracting information from multiple sources and the analysis of that information (crucial if opportunities and hot spots are to be identified quickly and adjustments made) means considerable work for teams. AI has the ability to monitor and analyse multiple data points, often combined with outputs from machine learning or other algorithms, quickly and efficiently (e.g. forecasting total emissions or identification of raw materials that have the highest impact on CO2 reduction). It can also enhance the quality of insights generated by this analysis by providing explainable and clear “next best actions”. Three: Sentiment analysis Public sentiment can significantly impact a business's reputation and performance. Social media, in particular – a key source of sentiment information with many people sharing their views and experiences – can often prove difficult for companies to monitor and manage quickly. Sentiment analysis can assist with this. A form of natural language processing (NLP) that uses AI to evaluate and classify sentiments expressed in textual data can provide consolidated insights to businesses. Until recently, sentiment analysis required extensive training data, making the process time-consuming and expensive. The process has been revolutionised with the emergence of Large Language Models (LLM). LLMs perform very well when it comes to classifying text and analysing sentiment without the need for prior training, thus streamlining the sentiment analysis process. This innovation makes the collection and interpretation of public sentiment more seamless, helping businesses get a quicker and more accurate understanding of how they are perceived by the public. New opportunities Organisations that leverage AI will find it easier to meet their immediate sustainability goals and be better prepared to address future challenges. Quicker collation of information and analysis enables workforces to take greater initiative. By being able to make faster, more insightful decisions, people will have the time to identify new opportunities for greater environmental impact. Dave O’Shaughnessy is Partner and Sustainability Reporting – Technology Lead at EY

Workplace romances can pose challenges for employers. From policies to breakups, Moira Grassick offers 10 tips on how to avoid and manage potential difficulties Valentine’s Day was just a few weeks ago, but workplace romances can happen at any time of the year. If romance blooms in your workplace, it can sometimes cause complications ranging from gossip to complaints or grievances. Here are 10 tips to maintain control of your workplace and continue fostering a healthy and safe environment for your staff when dealing with an office romance. 1. Check your existing policies and procedures Are your existing policies and procedures appropriate for dealing with any problems that might arise as a result of workplace romances? It’s sensible to have either a confidentiality policy or conflict of interest policy in place, requiring employees to notify you of any change in their personal circumstances that might give rise to a conflict of interest. 2. Encourage staff to notify management of a workplace romance Requesting that employees notify management about their love life might seem awkward or over the top, but it is important that management be aware of any romantic relationship in the workplace. Then, they can decide if appropriate steps need to be taken. 3. Don’t ignore a workplace romance Not every employee will be comfortable reporting their new relationship. It could become known to management by other means that a personal, romantic relationship between staff members has developed. It’s best not to ignore this information and proceed as you would if you had learned about the relationship from the people involved. 4. Think about changing the work environment It is sensible to consider whether the reporting structures within teams need to be revised. Changes like these must be discussed with the people affected. Reassessing reporting structures in the case of a workplace romance, especially if management is one of the parties involved, can help allay any suspicion of favouritism that might arise at a future date. 5. Beware of favouritism Ensure that staff engaged in relationships with a colleague are not involved in any management decisions involving their partners. It is important that management decisions are taken impartially and that the impartiality of the decision is clear to everyone involved. 6. Don’t be afraid to take action Treat any complaints from staff members – involved in the relationship or not – seriously. If people are witness to, or experience, inappropriate behaviour in the workplace, it is an employer's responsibility to manage it. 7. Training management Most managers lack training and knowledge on how to tackle romantic relationships at work. Managers need to be aware of how to manage such situations, what the potential risks are and how to manage these risks. Managers should also have regular training on how to respond to harassment complaints that may arise as a result of a romantic relationships at work, or its aftermath. 8. Social events Christmas parties or work social events are often the source of workplace romances. It’s a good idea to remind staff that they are still expected to abide by company policies, even if the party is outside of the workplace. If something goes wrong, you, as an employer, could be liable. 9. Breakups Of course, not all love is made to last. Problems might arise if a workplace romantic relationship ends, especially if it doesn’t end smoothly. These situations could impact an employee's work performance or professional relationships. This might require thinking about moving the staff members involved. 10. Obligation to maintain a safe workplace Sexual harassment and bullying can often arise in the context of workplace romances. Employers should have policies and procedures in place to deal with any such incidents and related complaints. Love may be in the air, but it doesn’t have to poison the workplace. Be proactive, set expectations around conduct and enforce your workplace policies. Moira Grassick is Chief Operating Officer at Peninsula Ireland

The UK Government published its first sanctions strategy on 22 February 2024. The strategy addresses how it uses sanctions as a foreign and security policy tool. It sets out the continued investment, partnerships and structures that support UK government sanctions and the cross-government architecture built to deliver sanctions. It outlines the partnerships developed with the private sector, NGOs, and international partners, and the steps being taking to strengthen sanctions implementation and enforcement. This information is provided as resources and information only and nothing in these pages purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the pages. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of these pages, we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained in these pages.