What is Nepotism in the workplace (Ontario)?

In Ontario, nepotism in the workplace refers to the practice of favouring relatives or close friends by offering them jobs or promotions based on their relationship rather than their qualifications and merit.

Some common examples of nepotism include:

• Hiring Relatives or Friends: An employer hires a family member or close friend, despite them not being the most qualified candidate for the position.
• Promotions: An employee is promoted due to their familial relationship with a manager or executive, bypassing more qualified and experienced colleagues.
• Salary Increases: Relatives or friends receiving unjustified salary increases, bonuses, or other financial benefits due to their personal relationships within the organization.
• Work Assignments: Preferential treatment in assigning less challenging or more prestigious tasks to family members or friends, not based on merit or competence.
• Access to Opportunities: Relatives or friends given special access to opportunities such as projects, training, or networking that are not as readily available to other employees.
• Influence and Decision-Making: Family members or close friends having undue influence over organizational decisions, policies, or strategies due to their personal relationships.
• Conflict Resolution: Handling conflicts, disputes, or disciplinary actions in a biased manner, favouring relatives or friends over other employees.
• Resource Allocation: Family members or friends getting preferential access to organizational resources, including budgets, tools, or office space.

Is nepotism legal in Ontario?

Yes. It is legal for a company, business owner or manager operating in Ontario to engage in nepotism. There isn’t a specific law that outright prohibits nepotism in the private sector.

In fact, section 24(1)(d) of the Ontario Human Rights Code states that it is not a violation if “an employer grants or withholds employment or advancement in employment to a person who is the spouse, child or parent of the employer or an employee.”

The Code does promote fair employment practices and discourages discrimination in hiring and employment practices. Employers engaging in nepotism may face legal challenges if their practices result in discrimination based on protected grounds, including race, ancestry, colour, ethnic origin, gender, sexual orientation, and age.

Public sector

In the public sector in Ontario, there may be more explicit policies and rules against nepotism to ensure fairness and transparency in employment practices.

Negative effects of nepotism in a workplace

There are many ways that nepotism can negatively impact a workplace in Ontario:

• Reduced Employee Morale: Nepotism can lead to dissatisfaction and demotivation among employees who feel that unfair familial preferences overshadow merit and performance.
• Decreased Productivity: When unqualified relatives or friends are hired or promoted, it can hinder workplace efficiency and overall organizational productivity.
• Talent Deterrence: Talented individuals may be deterred from applying to or staying in a company where nepotism prevails, limiting the pool of qualified candidates.
• Increased Favouritism: Nepotism can cultivate an environment of favouritism, where decisions are made based on personal relationships rather than objective assessment.
• Limited Diversity: Hiring based on familial relationships often limits diversity in the workplace, which can inhibit different perspectives and ideas.
• Poor Decision-Making: Nepotism may lead to poor organizational decisions if they are made by or influenced by less qualified or experienced family members or friends.
• Risk of Conflicts: Having family members or close friends in the same workplace can lead to potential conflicts of interest, making objective decision-making challenging.
• Reputation Damage: A company’s reputation may suffer if stakeholders, customers, or the public perceive it as an organization where nepotism and favouritism are prevalent.
• Legal Risks: Nepotistic practices may result in legal challenges if they are found to violate employment laws, human rights codes, or anti-discrimination regulations.

Fired due to nepotism

If you are fired, laid off, or lose your job because of nepotism, you are entitled to full severance pay. A severance package in Ontario can be as much as 24 months’ pay, and is based on multiple factors, including your age, length of service and position. Find out how much you may be owed by using the Pocket Employment Lawyer.

If negative, unwanted changes are made to your job (cut in pay, reduced hours, demotion) as a result of the company’s practice of favouring close friends or relatives, you may be able to get severance pay through a constructive dismissal claim.

Contact us

Don’t sign off on any severance offer until you consult with an employment lawyer at Samfiru Tumarkin LLP. If you accept a termination package before having it reviewed, you could be throwing away tens of thousands of dollars.

Our employment lawyers operating out of Toronto, Ottawa, Calgary, and Vancouver have helped countless people across Ontario, Alberta, and B.C. enforce their rights.

If you are a non-unionized employee who needs help with a severance package or other employment issue, contact us today or call 1-855-821-5900. As Canada’s most positively reviewed law firm, we look forward to getting you the advice you need, and the compensation you deserve.