What are employment laws regarding personal relationships? How?

Kuldeep and Nehal are both employed by the Northern District University (NDU) in NSW. They both began work in May 2014 and met at the NDU Orientation for New Staff Program. The NDU employment contracts state that all staff are obliged to comply with all of NDU’s HR policies and procedures. Kuldeep and Nehal have both signed their contracts of employment. Nehal is Kuldeep’s direct supervisor. Over time, Kuldeep and Nehal began to go out of the office for morning tea and lunch. They began to see each other in the weekends and have been sending private and provocative emails to each other during work hours. As part of its HR policies and procedures, NDU monitors staff emails. The HR Manager has called them both in for a meeting and has told them that due to their personal relationship and their emails during work hours, they are dismissed, effective immediately. Kuldeep and Nehal argue that their personal relationship has not affected their work and they are going to see their lawyers. ) You are the lawyer that Kuldeep and Nehal go to see. Advise Kuldeep and Nehal what actions they may take. b) You are the lawyer for NDU. Advise NDU what actions it may take.