A RECENT unusual and sad case heard by the Employment Tribunal in Newcastle recently demonstrated all too clearly that employment relationships can still break down, even when the employee and employer are related.

The case also serves as a reminder to employers that family members have the same employment rights as any other members of staff.

The case involved a Gateshead toy company where the owner employed his sister as a part-time clerical assistant earning £68 a week. The tribunal heard that the employer had asked his sister to work full-time, but that she had felt unable to do so because she was newly pregnant. Upon hearing this, the employer became annoyed and told his sister that she had messed things up for him and that she might as well leave. His response to his sister's refusal to work full-time was that she might as well hand in her notice and indeed, about a month later, that is what she did.

The sister claimed that her brother's treatment amounted to sex discrimination and constructive unfair dismissal. She succeeded at the tribunal hearing and was awarded compensation of £5,000.

It is understood that the employer has refused to pay the tribunal's award and has threatened to wind up his company.

He is quoted as saying that he would rather jump off the Tyne Bridge than pay his sister the compensation ordered by the tribunal.

The temptation to assume that family members have no rights, or will invariably choose not to enforce the rights that they do have, is attractive but dangerous. It is unlikely that the employer in this case would have insisted upon any other female employee working full-time or that he would have told any other pregnant employee that she should hand in her notice.

Many companies - both large and small - employ family members in some capacity. The relationship, however, makes no difference whatsoever. A breach of employment rights can have serious financial repercussions as well as personal ones.

Stephen Elliott is a solicitor in the employment team of North-East law firm Ward Hadaway. He can be contacted on 0191-204 4000 or by email at stephen.elliott@wardhadaway.com

Published: 08/06/2004