Family businesses: Getting relationships right

In family-owned businesses, the nature of the employment relationship is often agreed on an informal basis and the implementation of contracts of employments, directors service agreements and staff handbooks are overlooked, to the detriment of the business.

Situations can arise where one family member is looking to remove another due to a breakdown in the family relationship, an act of misconduct, or an issue with poor performance, so it is important to have these documents in place.

In addition, care should be taken to avoid special treatment. Family members must follow the same policies and procedures, usually set out in the staff handbook, as others, including standards of conduct, absenteeism and claiming expenses.

Inconsistent treatment could result in claims of discrimination or constructive dismissal if, for example, a non-family member is subjected to a disciplinary sanction more severe than a family member.

When hiring or promoting, employers should select the most qualified individual for the position, regardless of family status. A fair recruitment policy should be drafted and followed.

A family member’s role and all other workers’ roles should be set out in job descriptions where responsibilities should be clearly defined, which is likely to reduce conflict. Just because an employee happens to be the business owner’s sister, for example, may not mean she has the authority to appoint or dismiss staff.

All employees should undergo the same performance process. The business and the family member will benefit from honest feedback about areas for improvement and strengths. Where possible, include input from non-family members to limit the perception of bias.

Enjoyed this? Read more from Sally Eastwood, Farleys

Latest news

1

Fylde Council extends Enterprise Zone Development Order to boost economy Lancashire Advanced Engineering and Manufacturing Enterprise Zone

Fylde Council extends Enterprise Zone Development Order to boost economy

18 Feb 2025

2

Edge Hill University secures government grant to drive scale-up of international food exporter Peter Hughes, Director left and Frank Roue Director right

Edge Hill University secures government grant to drive scale-up of international food exporter

18 Feb 2025

3

Innovate Lancashire increases business engagement capacity to accelerate county’s innovation growth Natalie Wilson Hannah Churchman Trudi Waldram

Innovate Lancashire increases business engagement capacity to accelerate county’s innovation growth

18 Feb 2025

4

MP says the Lancashire and Cumbria Institute of Technology will be vital in meeting county’s housing needs Maya Ellis MP With Mark Taylor In The Engineering Department CREDIT Callum Pilkington

MP says the Lancashire and Cumbria Institute of Technology will be vital in meeting county’s housing needs

18 Feb 2025

5

Blackburn College lights up CyberFest with a focus on next-generation cybersecurity Umayr Mir talks a visitor through The BLIS Suite

Blackburn College lights up CyberFest with a focus on next-generation cybersecurity

17 Feb 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
Skills Bootcamp in Procurement - Cohort 3
Blue-Modern-Land-Travel-Youtube-Thumbnail-2-1024x576.png.png
LBV Hub Awards
14 Jan 2025 - 18 Mar 2025

Skills Bootcamp in Procurement - Cohort 3

Community & Business Partners CIC, Blackburn, BB2 3UA

09:30 - 13:00

Understanding & Preventing Sexual Harassment - Creating Safe & Respectful Workplaces
Supporting Women's Health in Your Teams A Path to Success-3.png.png
LBV Hub Webinar
21 Feb 2025 - 21 Feb 2025

Understanding & Preventing Sexual Harassment - Creating Safe & Respectful Workplaces

*, Online, *

12:30 - 13:30

Choose Chorley for Business Event - Celebrating Chorley's diverse economy, companies, and success
Choose Chorley event
LBV Hub Networking
21 Feb 2025 - 21 Feb 2025

Choose Chorley for Business Event - Celebrating Chorley's diverse economy, companies, and success

Park Hall Hotel, Charnock Richard, PR7 5LP

14:00 - 17:30

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

Women's Health champion training
Supporting Women's Health in Your Teams A Path to Success-6.png.png
LBV Hub Webinar
26 Feb 2025 - 26 Feb 2025

Women's Health champion training

*, Online, *

10:00 - 16:00

Level 3 Emergency First Aid at Work Course - In Person
RKMS ACADEMY LOGO - BLACK AND ORANGE.png.png
LBV Hub Webinar
26 Feb 2025 - 26 Feb 2025

Level 3 Emergency First Aid at Work Course - In Person

RKMS Group , Blackpool, FY42DP

09:30 - 17:00

Employment Law, Tax and Payroll Update - East Lancashire
PM and M event
LBV Hub Seminars
26 Feb 2025 - 26 Feb 2025

Employment Law, Tax and Payroll Update - East Lancashire

Accrington Stanley Football Club, Accrington, BB5 5BX

08:00 - 10:00

Preston Freelancer Meet-Up: February
Freelancer Meet-Up Feb.png.png
LBV Hub Networking
26 Feb 2025 - 26 Feb 2025

Preston Freelancer Meet-Up: February

Society1 Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Better People Management Workshop
Business Breakfast.jpg.jpg
LBV Hub Seminars
26 Feb 2025 - 26 Feb 2025

Better People Management Workshop

The Jimmy Arnfield Suite Lancashire Football Association, The County Ground, Thurston Road, Leyland, PR25 2LF

10:00 - 15:30

StackedX with PM+M and CFO Techstack
LBV Hub Seminars
27 Feb 2025 - 27 Feb 2025

StackedX with PM+M and CFO Techstack

Red Hall Hotel, Bury, BL9 5NA

08:00 - 10:00

Better People Management Workshop
LBV Hub Seminars
27 Feb 2025 - 27 Feb 2025

Better People Management Workshop

Pendle Town Hall, Market Street, Nelson, BB9 7LJ

10:00 - 15:30

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV120 Online Graphic 1
Subscribe now

Weekly news bulletin