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ARTICLE · 15 AUGUST 2020

Inappropriate workplace relationships: The McUnhappy meal

The former CEO of McDonald's is being sued for allegedly lying about his relationships with other employees.

AustraliaEmployment and HR
Andrew Jose
Andrew Jose

The former CEO of McDonald's is being sued by McDonald's to recover his $US 40m termination package for allegedly lying about his relationships with other employees, which highlights the risks of failing to manage employees having inappropriate workplace relationships.

Background

In November 2019 the former CEO left McDonald's after it was revealed that he had been in a "consensual" relationship with another employee, which was a breach of the company's policies. The former CEO had denied that he had been involved in any other consensual or inappropriate workplace relationships during the investigation.

The board voted to terminate his employment, agreeing to a termination package comprising of severance pay and stock-based benefits worth approximately $US 40m. At the time of the termination McDonald's had put out a press release stating that it was due to "the Board's determination that he violated company policy and demonstrated poor judgment involving a

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