Nepotism in the Workplace

A controversial subject in the workplace is nepotism. This article from our wrongful dismissal lawyer in Toronto will answer some questions on the topic including:

  • What is nepotism?
  • What are some examples of nepotism?
  • Is nepotism legal?
  • What are some problems with nepotism in the workplace?
  • How can nepotism be avoided?

What is Nepotism?

The Oxford definition of nepotism is “the practice among those with power or influence of favouring relatives, friends, or associates, especially by giving them jobs.”

This means that qualifications and/or ability are secondary to relationships between individuals. In effect, it can be the opposite of meritocracy.

What are Some Examples of Nepotism?

Nepotism can take numerous forms. Here are some common examples:

  • Hiring a family member or friend rather than a more qualified applicant;
  • Giving a family member of a friend better working conditions;
  • Providing raises, bonuses or other benefits to a family member or friend instead of a more accomplished, deserving employee;
  • Not disciplining a family member or friend for the same wrongdoing another employee was disciplined for.

Is Nepotism Legal?

There are no laws in Ontario (statutory or common law) that prohibit nepotism. That means an employer accused of nepotism isn’t doing anything illegal, even if it is arguably unethical. Moreover, the Ontario Human Rights Code specifically states that it is not a violation of the Code to give benefits to a family member in the employment context. While it may be a poor business decision to promote a spouse, child, friend, etc., it is not illegal.

One instance where an employee may be able to sue an employer for nepotism is if there is an anti-nepotism policy in the workplace, and the employer failed to abide by it. Otherwise, there are very few instances in which suing an employer for nepotism will be successful.

What are Some Problems with Nepotism in the Workplace?

Even though nepotism is not illegal, it can still pose problems for the workplace. Some of these problems include:

  • Non-family or friends in the workplace may harbour bitterness towards the employees benefiting from nepotism, which can upset a good workplace culture;
  • Nepotism can reduce employee morale if non-family members feel less valued;
  • The emotional ties between employees may result in biased decision-making;
  • Granting employment, promotions, raises, etc. based on nepotism rather than qualifications and ability can result in bad business decisions;
  • Nepotism can result in a conflict of interest;
  • Non-family and friends may not work as hard because they believe the promotion, raise, etc. will instead be given to an employee based on nepotism;
  • Nepotism can damage an employer’s

How Can Nepotism be Avoided?

There are numerous ways in which a workplace can avoid nepotism. Ultimately, it depends on the people in charge.

As stated earlier, a written policy on anti-nepotism may hold those in charge accountable. Should the employer break its own policy, an employee may be able to sue.

Another way for an employer to avoid nepotism is to ensure if they are hiring or promoting family members, they have:

  • The appropriate education required for the role;
  • Prior work experience;
  • An open position in the business which matches the family members’ educational and employment background.