It happens - I certainly wouldn't see it as a big no. Clearly sensible guidelines may need to be in place if the roles ever come into close contact on projects etc . Whats your concern?

Hi
If people work local then it is only natural they will be working in same Company as close family / friends. It's up to your friend if she would feel comfortable with this. I personally have always worked away from the local area and have turned down job offers as I just wouldn't feel comfortable working with those I would socialise with or meet in the local bar and shop. Other's I know in HR are happy to work in same company as family etc
What is your concern?

Sounds like it depends on your friend's feelings or how she feels she will be perceived if she were successful.

There's a big difference between applying for a role and having it handed to you. I had an HR Director once that gave 2 or 3 roles to the same family member, one of the roles was on heavily inflated pay as well that couldn't be reasonably justified.

It only matters if one of the pair was treated differently than the other, or indeed other staff. And that might just need spelling out to them.

In reply to David Perry:

In general no reason why they shouldn't apply but best that they declare the family relationship. Then it's up to potential employer on how to process the application and whether or not to appoint if it comes to that. Personally, if it did, I'd want to be specifically warning the person appointed about confidentiality and the need to keep well beyond any possible suspicion in this regard - it can work, provided people make it work, but some employers wouldn't want ever to run the risk involved.