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Our policy on this matter is unwritten. We do not restrict the hiring of relatives but when it does occur they are not placed in the same department. This is beneficial to the company when there is a family emergency since it does not stop work flow. Also, when relationships turn sour it is not as destructive to moral.
Our handbook says:
We do not restrict the hiring of relatives of current employees; however, an applicant will not normally be hired, nor will a current employee promoted, into a position in which they would be supervised by a spouse or relative. No more than two family members may be in the employ of the company at one time.
I worked for a small senior retirement center and we had a policy against hiring family members. However, during the time I was HR Coordinator, I was asked to hire the daughter and the former son-in-law of one employee, the sister of another employee, and the daughter and granddaughter of yet another employee. We had lots of problems.
As long as they one doesn’t supervise the other; we don’t have a problem. With the economy the way it is more families are opting for working in the same place to avoid additional gas expenses and other things which can also be saved when mother, son/daughter or father son/daughter or husband and/or wife work together.
I worked for a company for 37 years, 20 of those years in the same department as my husband, I was in charge of the department, but was not his direct supervisor. Our biggest problem was getting management to realize that we were two different people with 2 different thoughts and opinions. Once they stopped grouping us together, all went smooth.
Because good employees can be a good source of recruiting potential employees, we do not have a policy against household/family members, but we state that the Company reserves the right to place people in close relationships (i.e. spouses, children, boyfriend/girlfriend, etc) where it deems approrpriate and has sole discretion of employee placement. This leaves us wiggle room to not have supervisor/subordinate and other potentially troublesome situations (same dept/shift, etc), but yet some flexibility.
I used to work for a company during the orientation gave new hires a document related to Conflict of Interest to disclose relationships (marriage for example) they may with the competition, previous knowledge, or if they had a conflict inside the company. There was also a policy for not supervising parent, children, spouses, etc.