Dear Ted North,
The closest relating to your question is under the Fair Work Act 2009, which protects workers from discrimination from discrimination - adverse action claim protect against unlawful discrimination. Personal characteristics protected from discrimination include:
- age
- race, colour, national or ethnic origin or immigrant status
- religion or political opinion
- sex, sexual orientation, or gender identity
- marital status
- pregnancy or breastfeeding
- family or career responsibilities
- physical or mental disability
State laws further protect employees from discrimination and may include additional characteristics but nothing specific for NSW. However the “not hire family member by a specific staff” which is effectively “anti-favortism” is not really what the law is concerned about and without more facts does not appear to fall into a class of behaviours that would be construed as unlawful discrimination. So yes it is probably legal.
I say probably because the policy is a bit odd that it only target CEO’s family so e.g. if the CEO is of a specific ethnicity that is rare it could potentially be argued that this policy is a disguised unlawful discrimination - history how this policy came to be many be relevant to examine further. If there is sufficient support and subject to how company constitution dictate how an employment policy can be amended it could be overruled.
The fact that it is a non-profit is irrelevant - Fair Work Act 2009 applies to employees of a a non-profit organisation.
Good luck!
-Nighthelyn
