Employment of Relatives/Family Members Policy #2

Objective

[Company Name] wants to ensure that corporate practices do not create situations such as conflict of interest or favoritism based on employment of relatives. This extends to practices that involve employee hiring, promotion and transfer.

Scope

Close relatives, partners, those in a dating relationship or members of the same household are not permitted to be in positions that have a reporting responsibility to each other. Close relatives are defined as the following: husband, wife, father, mother, father-in-law, mother-in law, grandfather, grandmother, son, son-in-law, daughter, daughter-in law, uncle, aunt, nephew, niece, brother, sister, brother-in-law, sister, sister-in-law, step relatives and cousins.

Procedure

Individuals will not be hired or promoted into a position that would create a conflict in [Company Name]’s policy. If employees begin a dating relationship or become relatives, partners or members of the same household, and one party is in a supervisory position, that person is required to inform management and human resources of the relationship. The employees will have 60 days to resolve the situation on their own. After 60 days, if the employees have not yet resolved the situation on their own by means acceptable to [Company Name], such as a transfer or employment outside the company, the employees’ supervisors will work with human resources (HR) to determine the most appropriate action for the specific situation. This may include transfer or, if necessary, termination of one of the employees.

If there is a situation where an action of [Company Name], such as reduction in force, results in an involuntary circumstance in which two relatives, partners or members of the same household may be reporting to each other, one of the employees will be reassigned within 60 days. During those 60 days, the supervisory employee will not have involvement or direct input in the employment decisions of the other employee.

[Company Name] reserves the right to apply this policy to situations where there is a conflict or the potential for conflict because of the relationship between employees, even if no direct reporting relationship or authority is involved. In these situations, [Company Name] will reassign one of the employees within 60 days.

Any exceptions to this policy must be approved by the department director and HR. Written justification for the exception must be submitted to HR prior to any employment decisions.