While there can be benefits to having family members as employees, employers have to consider the potential effects of dismissing them too – here’s a quick guide to what you need to know... There are three acts that you need to be mindful of when dismissing a family member, let’s take a look at each one in turn. Unfair Dismissal Act 1977 - 2007 The Unfair Dismissals Act 1977 – 2007 applies to employees who have been dismissed from their job in a harsh, unjust or unreasonable manner. This can result in a maximum compensation of two years’ salary. As per section 2(1)(c) of the Unfair Dismissals Act 1977: This Act shall not apply in relation to any of the following persons: “a person who is employed by his spouse, father, mother, grandfather, grandmother, step-father, step-mother, son, daughter, grandson, granddaughter, step-son, step-daughter, brother, sister, half-brother or half-sister, is a member of his employer's household and whose place of employment is a private dwelling house or a farm in or on which both the employee and the employer reside”. Important Note: This definition is not extended to aunts, uncles or cousins and you must meet the specific criteria of actually residing in the same household as the employer, and the workplace is that same household or farm in which both the employee and employer reside. Redundancy Payments Act 1967 Some employees are not entitled to Redundancy Payments as per sections 4(3)(b) of the Redundancy Payments Act 1967. You’re not entitled to a payment where the employer is the “father, mother, grandfather, grandmother, stepfather, stepmother, son, daughter, grandson, granddaughter, step-son, stepdaughter, brother, sister, half-brother or half-sister of the employee,[and] where the employee is a member of the employer's household and the employment is related to a private dwelling house or a farm in or on which both the employer and the employee reside”. However, civil partners would be entitled to redundancy pay in all circumstances where they’re employed by their partner. Minimum Notice and Terms of Employment 1973 – 2005 According to Section 3 (1) This Act shall not apply to (b) “employment by an employer of an employee who is the father, mother, grandfather, grandmother, stepfather, stepmother, son, daughter, grandson, granddaughter, stepson, stepdaughter, brother, sister, half-brother or half-sister of the employer and who is a member of the employer's household and whose place of employment is a private dwelling house or a farm in or on which both the employee and the employer reside”. If you need any further guidance regarding the dismissal of a family member, or any other employment issue, please contact our advice line on 01 855 5050
