Domestic employment arrangements

March 6th 2015

Did you know that if you take on domestic help you may be considered an employer?

Anyone who works in a private home is treated as an employee if they only work for one family, except for au pairs. This includes nannies, housekeepers, gardeners and anyone else working for one family. You’re their employer if you hire them.

As an employer you would need to ensure that an employee:

• has an employment contract
• is given payslips
• does not work more than the maximum hours allowed per week
• be paid at least the National Minimum Wage

They’re also entitled to employment-related benefits, if they meet the eligibility requirements. These include:

• statutory maternity pay
• statutory sick pay
• paid holiday
• redundancy pay

Additionally, domestic employers must:

• check if the person can work in the UK
• have employer’s liability insurance
• register as an employer and send employer tax returns each year - even if they pay the employee in cash

Running a home with staff is the equivalent of running a business with staff, there are a multitude of legal matters you will need to consider.

Please contact DSC Chartered Accountants in Harrogate if you would like to discuss this article in more depth.