American Apparel implements new ethics code demanding staff seek approval to date their colleagues - one month after CEO was fired over sexual assault claims 

• American Apparel's conversational former CEO Dov Charney was terminated last June over allegations including sexual harassment and racism
• He stands accused of using one employee as a 'teenage sex slave' and calling another 'a wannabe Jew'
• Despite this, Mr Charney stayed on in a consultant role but was fired from that position in December
• The new code of ethics - which has been instated to help 'prevent sexual harassment' - is four times the length of its previous version
• It forbids 'welcome or unwelcome sexual advances' and 'public displays of affection'
• Employees involved in romantic relationships must inform human resources - and may then be redistributed 
• Longtime fashion executive Paula Schneider commenced her role as American Apparel's new CEO on Monday

Published: 11:04 EST, 7 January 2015 | Updated: 17:41 EST, 12 June 2015

American Apparel has issued a new ethics code which demands employees who are 'casually dating' or involved in 'committed romantic relationships' inform human resources to seek approval.

The new code, which is four times the length of the previous version, was introduced in order to help 'prevent sexual harassment in the workplace', and comes less than a month after the retailer's founder Dov Charney was fired as a consultant over allegations of such offenses.

'No management-level employee may make sexual advances, welcome or unwelcome, toward any subordinate,' the code states, adding that 'company personnel should never engage in any public displays of affection in the workplace.' 

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Cracking down: The new code has been introduced to 'prevent sexual harassment in the workplace', and comes after the retailer's founder Dov Charney (pictured) was fired over allegations of such offenses

The lengthy new code states that romantic relationships between employees should be disclosed to American Apparel's human resources department to be assessed for potential 'concern.'

It also forbids 'favoritism' and includes a 'fair treatment of employees' section, which specifically bans 'discriminatory slurs' related to sexism and racism. 

American Apparel's controversial former-CEO Mr Charney, who founded the company in 1998, was terminated as chairman last June after the company compiled a long list of his alleged offenses; including sexual harassment, misuse of company funds, and racist comments. 

He stayed on in a consultant role but was fired from that position in December. Longtime fashion executive Paula Schneider has joined the company as CEO. 

Strict: The lengthy new code states that romantic relationships between employees should be disclosed to American Apparel's human resources department to be assessed for potential 'concern' 

Last month, Mr Charney claimed to be almost broke and reduced to crashing on a friend's couch in New York after being ousted from his company.

As CEO, he earned an $800,000 annual salary, but recently told Bloomberg that he only has $100,000 left in the bank. 

He remains the company's largest shareholder, but doesn't have control of his 43per cent stake because of an agreement with hedge fund Standard General.

Mr Charney said he felt betrayed by the hedge fund that had given him a loan in July so he could boost his ownership of the company he had founded.

Mr Charney turned to the firm for help when he was ousted as CEO the previous month.

'I gave them my entire life's work and they agreed to put me back in,' he stated. 'But instead they used this investigation to fire me. They betrayed me. I gave them my heart.'

Standard General disagrees with Mr Charney's version of events and released the following statement: 

'We supported the independent, third-party and very thorough investigation into the allegations against Mr Charney, and respect the Board of Directors' decision to terminate him based on the results of that investigation.'

Despite what has happened, Mr Charney has said he plans to keep fighting and is 'suing everyone' with what little funds he has left.  

The Montreal-born Mr Charney has famously been the subject of lawsuits that allege he had inappropriate sexual conduct with female employees. 

He has admitted he had consensual sexual relationships with workers.

In 2011, a former employee accused Mr Charney of keeping her as a teenage sex slave, fearing she could lose her job otherwise. 

She also sued American Apparel and its directors for failing to stop him from acting as a 'sexual predator.'

Moving on: Longtime fashion executive Paula Schneider (left, in 2004), formerly of Warnaco, Gores Group and BCBG Max Azria, started as the retailer's new CEO this week

In 2012, Mr Charney once again came under fire when Michael Bumblis, a former store manager in Malibu, California, accused the CEO of rubbing dirt in his face and choking him.

Mr Charney also allegedly called the man 'a wannabe Jew' and used a derogatory term for homosexuals. Mr Bumblis was later fired from his job.

The company has suffered financially. It has recorded annual losses since 2010 and reported three quarterly losses last year. Its stock dropped 53per cent in 2014.

Ms Schneider, who officially started as CEO on January 5, has been a senior executive at retail and clothing companies including Warnaco, Gores Group and BCBG Max Azria.

She said in a statement that she hopes to 'make American Apparel a better company, while staying true to its core values of quality and creativity and preserving its sweatshop-free, Made in USA manufacturing philosophy.' 

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