Jurisdiction(s):
United Kingdom

Advising family-owned businesses on employing relatives: governance and policy design, recruitment and promotion processes, succession and transition planning, remuneration, and strategies to manage nepotism and role-misfit risks

Published by a LexisNexis Corporate expert

Practice notes

Conventional business norms do not always suit a family enterprise in practice; for example, many organisations regard nepotism as an unethical practice. The company and its stakeholders must be fully safeguarded against unsuitable relatives commanding excessive salaries and the ripple effects such appointments create across the wider workforce overall. Yet within a family firm, an individual may still favour recruiting kin for reasons such as:

trust—family members can be trusted to carefully safeguard the long-term interests of both the business and the family as a whole
commitment—relatives may show greater dedication and loyalty, working harder, for longer hours, and for lower pay, whilst still delivering a satisfactory return even if they are less skilled or formally qualified than external candidates
innovation—family can provide a fertile source of practical and highly effective new ideas to grow and develop the business further, as they often best understand what the enterprise represents to the family
long-term view—family members frequently demonstrate sustained, long-term commitment to the business, which many stakeholders would indeed welcome

Why is a family in business?

It is crucial to recognise that differing perspectives on employing family members reflect differing reasons for a family deciding to be...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Ken McCracken

Ken is recognised as one of the leading family business consultants in Europe. His work focusses on helping family businesses and family offices create the type of governance that will help them to achieve their version of success. Ken is also actively involved in advocacy to improve the overall awareness of the economic and social contribution made by enterprising families. He a Fellow of the Family Firm Institute (FFI), the leading international organisation for family business professionals and academics and is the author and teacher of the Advanced Certificate in Family Business Advising for the Society of Trust and Estate Practitioners (STEP). He is a past recipient of the FFI Award for Outstanding Interdisciplinary Achievement and the STEP Award for Family Business Adviser of the Year. ...

Web page updated on 21/05/2026

Popular documents

Using the Judicial College Guidelines to assess general damages in personal injury claims

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Tomlin orders in England and Wales: CPR guidance on drafting, confidentiality, approval, variation, enforcement, limitation, CCA issues, court-specific requirements, sample wording and precedents

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Precedent: Deed of Surrender of Lease with Optional Premium, Settlement and Release, Landlord, Mortgagee and Guarantor Consents, Reimbursement and HM Land Registry Provisions (England and Wales)

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Precedent Statutory Declaration: Standard Wording under the Statutory Declarations Act 1835

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...