Many family businesses employ siblings or other family members. Working with siblings can be rewarding and have many benefits but it also comes with its own set of problems. A common and uncomfortable issue is where one sibling chooses not to pull their weight;. this might just be a perception or it could be how it really is. In situations such as these, what can be done?

The easy option is to bury your head in the sand, because why would you want to rock the boat? It's family, and you need to work and live with these people, right? The truth is, it’s very tempting to ignore the problem unless you are the one finding yourself having to constantly pick up the slack while your sibling coasts through on the strength of their ‘family favourite’ status. However, if you ignore the issue, there is always the chance that other staff might feel you are condoning your sibling’s behaviour or making allowances that would not ordinarily be tolerated from non-family members.

How to approach the problem

A good starting point is to ask whether your sibling agrees that there is an imbalance in workload and/or responsibilities When family members are employed within a family business, it is not uncommon for legal formalities to be dispensed with along with proper terms and conditions of employment, such as the definition of the role, and this can mean there are ‘grey’ areas. If neither you nor anyone else can articulate what your sibling is meant to be doing, how can they be expected to know? 

If there are no employment contracts or job descriptions, or if they exist but lack detail or are out of date, sit down with your sibling and discuss and (hopefully) agree areas of responsibility. As part of this, consider if your sibling is sufficiently qualified or has the experience to do what is expected of them? For example, would they benefit from mentoring or training?

Define areas of responsibility

If areas of responsibility have been defined and agreed - whether this was at the outset of employment or more recently - these can form the basis of a conversation with your sibling and can help remind them of their duties and responsibilities. You may have actual examples of when they fell short and what they could be doing differently. If after this intervention your sibling is still not pulling their weight, think about ways in which they can be given ‘ownership’ and be held accountable.

You may want to review all areas of responsibility within the business to make sure that any issues can be raised in a timely fashion. Doing so will allow you to identify the consequences of your sibling failing to fulfil their responsibilities. It is reasonable for there to be a consequence if any person is employed and paid to do a job and they do not deliver, and those factors apply to all employees - including family members. 

A failure to deliver, even in small ways, can mean deadlines are missed and reputation is damaged, internally and externally. Choosing not to take action can be detrimental to your business and, eventually, lead to resentment from other staff. They will be watching family members who are held to a different standard to them, which can not only affect morale but also result in a much higher staff turnover. 

From a legal viewpoint, ignoring sibling behaviour but taking disciplinary action against a member of staff for performance or conduct, could have serious consequences.

Consequence

Performance management - or even disciplinary action - can help to bring about an improvement. Refer to your internal policies - how do they state employees who are not pulling their weight should be managed? These policies apply to your sibling as well as the rest of your staff; by ignoring them you are in breach of your own processes and other employees will be sure to notice.

Key points to take away

If you are struggling to regard your sibling as an employee, think about their status as an employee or worker as this grants them certain rights which are enshrined in law. These rights can be enforced against the family business if certain issues were to occur, including failing to handle lack of performance correctly. If you treat your sibling as an employee, it can help minimise the risk of those issues occurring. For example, all employees are legally entitled to receive a statement of the main terms and conditions of their employment no later than their first day of employment. The main terms must include job title, salary, and entitlement to holiday, training and benefits.

As in most things, prevention is better than cure. It is always important to ensure you have the basics in place to help manage and minimise issues when working with siblings or other family members.  Try to draw a clear line between home and work and ensure the following have been issued:

• Statement of main terms and conditions (either as a separate document or covered off in an employment contract)
• A job description with responsibilities set out
• The process to ensure accountability
• Policies/staff handbook

Even with all the above in place, managing relationships with siblings or any family member at work can be difficult. Our BLHR and Employment Team has extensive experience in providing advice to clients in this area of the law. We can help you navigate difficult situations sensitively as well as draft relevant contracts and policies to secure the right outcome.

You can contact me via email here or contact any member of our team here