Workplaces are often undermined by unfair hiring practices, and nepotism is one such example. But what are the actual legal implications of keeping it in the family?
What is it?
First, we need to define what nepotism actually is. According to the Cambridge Dictionary, Nepotism is the act of using your power or influence to get good jobs or unfair advantages for members of your family. This is closely related to cronyism which is the similar but for friends or acquaintances.
It is more prevalent in smaller firms and workplaces, particularly family-owned businesses. This is often the case as it means employers can bypass the hiring process saving time and money.
While nepotism is a narrow form of favouritism, the two terms cannot always be used interchangeably. Favouritism is often based on personal biases, intentionally or unintentionally. For instance a manager having an outgoing and extroverted personality so preferring to promote and hire those with similar characteristics.
Is it illegal?
On the whole, no – according to existing UK employment law. The UK Government stats that it is unlawful to treat someone less favourably than someone else on the basis of a personal characteristic such as religion, sex, gender reassignment or age. However, this does not specifically address the issue of prioritising family members over other candidates, so employment tribunals cannot take legal action against it directly.
That said, it can become more complicated where nepotism leads to others missing out resulting in discrimination which is covered by UK employment law. In this situation, it depends on who the decision will be effecting. If the friend or family member is chosen over a person who is more suitable for the job, and has a protected characteristic in your workplace, you could fall foul of discrimination law. These protected characteristics are:
Is it all bad?
The impacts of nepotism is a relatively under researched area there are potential benefits in certain contexts. In family-run businesses for example a relative starts from the ground up may gain a deeper understanding of the specific business and industry, eventually leading to more effective leadership. Additionally, working with someone you already know well can foster better communication and collaboration, boosting productivity.
While these ideas seem logical, the limited research on the subject shows little evidence supporting the idea that nepotism can have a positive impact. On the contrary, there are some studies that point towards its negative impacts. It can lower morale among other employees, where they feel undervalued by management. It has also been linked to higher staff turnover, poorer organisational performance and diminished respect for leadership.
Conclusion
Whether nepotism is acceptable in your workplace is a nuanced issue. It is not explicitly illegal and may well be convenient. However, by engaging in nepotism puts you on shaky legal ground and in any case, it may well be better to avoid it for the sake of long-term success and a healthy organisational culture.
If you have a concern about this in your workplace that you would like to take legal advice on please contact us on reception@odt.co.uk or by calling 01273 710712.