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HR & Employment

How to handle nepotism in the workplace

Bryan Brown | 7 April 2026 | 6 months ago

How to handle nepotism in the workplace

Nepotism often makes for an unpleasant work environment and is a tough one to deal with. Having an executive abusing their power in any form leaves a bad taste in employees’ mouths. Unfairly favouring the hire or treatment of employees who are relations (or are an important part of the hiring person’s personal life) will quickly lead to issues in the workplace.

We aim to help you learn how to deal with nepotism, whether you are an employer or employee who has witnessed examples of nepotism in the workplace. As an employer, it would be prudent to draw up an anti-nepotism policy, especially if you are not the person hiring. It is important that you or your executives treat all employees equally.

Unfortunately, nepotism is found in all industries, including the civil service. A few employees will push back against it, but the majority fear for their job security and remain quiet.

How do you deal with nepotism at work as an employee?

If you want to report nepotism at the workplace, it is important that you know how to talk about it in order to present your case. The first step would be recognising the signs of it.

Here is a list of signs to identify:

  • Unfair awarding of promotions, benefits, and appraisals.
  • Lack of recognition for diligently executed tasks versus a boss’s relative/friend (the favourite) receiving overwhelming recognition for insignificant task completions.
  • Unfair comparison to “the favourite”.
  • Leave not being granted when needed for genuine, important reasons, but “the favourite” is granted leave for the most trivial reasons.
 

How do you fight nepotism as an employee?

As an employee, there are a number of ways that you can act upon seeing instances of nepotism in the workplace:

Contact the HR department

Facts are important, so start recording and documenting the instances of nepotism you observe. If available, you can also raise concerns through anonymous reporting channels before or alongside reporting to HR. When that is compiled, report to HR but ensure you do not become emotional or whine. Present your case logically and without bias.

Do not make accusations without irrefutable facts. There have been cases of presumed nepotism which were unfounded when the back story was revealed. Make sure the HR representative does not have a subordinate related to the boss, and check for any conflict of interest in the reporting route.

Obtain additional points of view

Ascertain whether others share your experience, or whether you are the only one with this view. If you are the only one, it would be prudent to review your position.

If there are a number of colleagues agreeing with you, discuss (not gossip) a joint approach to the problem. It also helps to build professional networks across teams or leadership levels so you can validate whether the issue reflects general workplace favouritism and reduce the impact of workplace bias.

Be professional

Maintain the higher ground and your professionalism. Continue applying yourself to work diligently and behave professionally at all times in the office. Avoid outbursts of frustration. Your professional and sincere attitude will support your case against discrimination.

Maintain a logical approach

Be certain that the behaviour is logically unfair. Ascertain if there are justifiable reasons behind the behaviour.

Perhaps the promotion was earned due to a successful activity you weren’t aware of. Maybe the employee who you believe is being treated unfairly is suffering from depression or massive loss, and the employer is treating them differently to try and help them through a dark period.

Of course, demoralising someone else, albeit unwittingly, is not good; however, if the intent was good, but the execution is causing the problem, you might have success talking it through with your boss and resolving it.

Legal action

Nepotism in itself is not explicitly illegal, but it creates legal risks when unfair favoritism affects employment decisions under employment law. That can lead to discrimination claims under the Equality Act 2010, and in some cases constructive dismissal claims under the Employment Rights Act 1996. Legal disputes cost time and money, so have a watertight case.

How to avoid nepotism as an employer

As an employer, there are way in which you could handle or even avoid instances of nepotism at work:

Become more professional

If you are the source of the nepotism, knowingly or unknowingly, make an effort to comprehend the impact of your behaviour on business success. Managers and senior managers should be trained to recognise unconscious bias and make ethical employment related decisions. Learn to separate your personal and professional lives. If you have hired a relative, ensure the person works as expected and is only rewarded in line with their efforts and relative to the rest of the team.

If the source of the nepotism is one of your executives, draft strict rules immediately that enforce professionalism. Review your company culture and decision making processes to assess whether personal relationships or personal connections are influencing outcomes.

Drafting an anti-nepotism policy

Anti-nepotism policies restrict the hiring of family members or acquaintances; they prevent direct reporting between relatives, and they should establish guidelines for fair hiring and promotion decisions, not just relationship restrictions. Hiring practices and internal promotions should be evaluated through the recruitment process using objective criteria tied to job duties and measurable performance.

Structured performance reviews and transparent promotion processes help prevent nepotistic practices, strengthen promotion decisions, and support maintaining fairness, while structured hiring processes promote a merit-based culture. Anti-nepotism policies should prohibit couples from having direct reports with one another and place restrictions relating to close acquaintances working together.

Be objective

Employers often state that they resorted to nepotism because their relatives were extremely reliable and are infinitely more loyal. A recruitment company doesn’t have to be paid, and employee benefits are usually less. Even when hiring family members seems convenient, fair hiring requires comparing them with qualified candidates against the actual needs of the role. Structured hiring processes promote a merit-based culture and help ensure qualified candidates are selected on merit rather than family ties.

If these points are valid, talk them over with your manager (if you are not the top executive) and formulate clear policies so that other employees remain unaffected. Nepotism can lead to hiring unqualified relatives, giving certain employees an unfair advantage over more qualified candidates, and even poor management that damages trust among skilled professionals.

Avoid general discrimination

In addition to discrimination by nepotism, you should be sure that your company is not unwittingly discriminating generally. Discrimination means making a biased decision based on a person’s:

  • Lack of familial or relationship links to you
  • Gender
  • Religion
  • Nationality
  • Skin colour
  • Sexual orientation
  • Disability
  • “Position” in society
  • Financial status
  • Age
  • Culture
  • Marriage status
  • Status as a parent
  • Reprisal/retaliation (someone who has laid a complaint)
 

Discrimination can affect the morale of the employees affected and their teammates which will directly affect productivity. An employee’s potential must be evaluated separately from their personal lives.

Legality and related issues

It is difficult for specific nepotism laws to be drawn up as there are an infinite amount of scenarios. The debate has no doubt been present in the workplace for many years, and from a legal perspective it is not automatically workplace illegal, but it can create legal compliance issues and legal challenges when favouritism affects fair treatment or protected groups.

The laws that could be used against favouritism at the workplace relate to discrimination but, in the business world, there are no niche laws against nepotism.

Nepotism can be addressed via discrimination laws, but, to be frank, few employers take the issue seriously. Directors and senior managers must ensure compliance and avoid conflicts of interest under the Companies Act 2006.

If your boss has chosen a specific faith in their life and they are deeply involved in the community linked to that faith, it is possible they may trust the opinion of those following that same faith versus your opinion if you are of another faith. They might promote those of that faith sooner than those not of that faith. This qualifies for discrimination on the basis of religion and is allowed a legal claim.

What if the situation is that of your boss favouring his/her relative, showering them with compliments and handing out promotions and rewards because they are family and share the same deep religious beliefs. This is nepotism but, due to law, very difficult to prove in court. Combine it with religious discrimination, and you have a far greater chance at success. Indirect discrimination can also arise where a practice in family businesses or family owned businesses disadvantages others.

Overcoming favouritism at work is not easy. If this kind of behaviour occurs very often and affects your quality of life at work and home, take strict action – you are entitled to equality at work.

It might, unfortunately, be unresolvable, which would mean you would want to start looking for work elsewhere. Make sure you have tried everything you can to resolve it before moving on, especially if you love the company and the industry you work in. Tough (polite) talks often result in stronger business relationships.

Remain professional, keep your head up and know your worth!

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