State (WA) and federal industrial laws contain different definitions of what constitutes a family member. All of the definitions include parents, spouses, children and siblings and some include grandparents of the employee or employee’s spouse.

Formal arrangements for employment of family members

There’s no legal requirement for a formal employment agreement with a family member, but it’s strongly recommended to document expectations and rewards in writing. (See the Employees section for guidance.)

If federal industrial laws apply to your business, you must at least comply with the National Employment Standards.

You must also meet your obligations under federal taxation and superannuation laws and state workers compensation laws when employing a family member.

Remuneration and benefits for family members

Family members working on the farm, especially young adults who leave school, return after study, or help parents step back, are often overlooked in terms of fair remuneration. Many receive only a living allowance and have no opportunity to build assets over years of work.

Assuming they will inherit the farm can lead to underpayment and create conflict among siblings during succession planning. Paying a commercial wage helps avoid these issues.