Employer Responsibilities When Hiring Household Staff

 

Employer Responsibilities for Nannies, Housekeepers and Household Staff in 2025 – A Guide for Families

As an employer of domestic staff, such as nannies, housekeepers, or domestic couples, it’s important to understand your legal responsibilities. By staying informed and following the necessary procedures, you can create a positive working environment and ensure compliance with the law. This guide outlines your key obligations as a private employer in 2025.

Salary: Gross vs. Net

Agreeing on a gross salary (before tax and deductions) is essential when hiring household staff. Some employers used net salary (after tax) in the past, but gross salary is now the more precise and recommended option.

  • Gross Salary: The salary before tax is deducted.
  • Net Salary: The salary after tax is deducted.

Using gross salary helps ensure both employer and employee have a clear understanding of pay and tax obligations.

National Insurance Contributions (NICs) and Tax Obligations

As an employer, if your employee earns over a certain amount, you must deduct National Insurance (NIC) contributions and tax from their salary.

Workplace Pension Scheme

Under the Pensions Act 2008, you must provide a workplace pension scheme if your domestic employee meets certain criteria.

Insurance: Employers’ Liability Insurance

When you hire staff to work in your home, you must have Employers' Liability Insurance in place. This insurance covers compensation if an employee is injured or becomes ill due to their work for you.

Holiday Entitlement

All employees are entitled to paid holiday, and as a domestic employer, you must ensure your staff receive their entitlement.

  • Full-time employees are entitled to 28 days of paid leave (including public holidays).
  • Part-time employees are entitled to a pro-rata amount of holiday based on their work hours.

Employment Contract

  • A written employment contract is an essential document that outlines the key terms of employment, ensuring that you and your employee are clear on expectations.
  • The contract should include:
  • Names of the employer and employee: The contract should clearly identify both parties.
  • Job title or description of duties: A clear outline of the employee’s role and responsibilities.
  • Start date: The date the employment begins.
  • Pay and payment details: This includes the amount of salary or wage, how often the employee will be paid (e.g., weekly, monthly), and any deductions (such as tax and National Insurance).
  • Working hours: The number of hours the employee is expected to work each week, including any details of overtime and shift patterns.
  • Holiday entitlement: The number of days of paid holiday an employee is entitled to, which must be at least 28 days (including public holidays) for a full-time worker.
  • Notice periods: The length of notice required from either the employer or the employee to terminate the employment.
  • Place of work: The location where the employee will carry out their duties, or if the employee is expected to work in different locations, a statement of this.
  • Sick pay policy: Details about sick leave and the policy regarding sick pay.
  • Pension scheme: Information about pension rights, including whether the employee is enrolled in a pension scheme and the contributions involved.

Having a contract in place protects both the employer and employee by making expectations clear.

Right to Work in the UK

Before employing any domestic staff, you must ensure that your employee has the right to work in the UK. You are legally obliged to check your employees' eligibility to work in the UK, whether they are UK citizens or not. We carry out Right to Work Checks on all placed candidates. 

Health and Safety at Work

While domestic employers don’t have to follow the same strict regulations as commercial businesses, providing a safe working environment for your household staff is still essential.

  • Make sure your home is free from health hazards and that your employee is trained to safely use equipment or cleaning products when necessary.
  • Protecting their well-being should be a priority, and by doing so, you create a positive working environment.

Maternity / Paternity Leave and Pay

If your employee is pregnant, they have the right to maternity leave and maternity pay under UK law.

Providing maternity leave and pay is a legal obligation for employers.

Sick Pay and Absence

If your employee cannot work due to illness, you are required to provide Statutory Sick Pay (SSP), provided they meet the eligibility criteria.

  • Eligibility: Employees must be off work for at least 4 consecutive days to qualify for SSP.

You can choose to offer additional sick pay if you wish, but you must at least meet the statutory requirement.

P45 and P60

When your employee leaves or at the end of the tax year, you must provide the following documentation:

  • P45: Given to an employee when they leave, showing their total earnings and tax deductions.
  • P60: Given at the end of the tax year, summarizing total pay and tax deductions for the year.

These documents ensure that your employee’s tax records are accurate.

Data Protection (GDPR)

As an employer, you must comply with the General Data Protection Regulation (GDPR) when handling your employee’s personal information.

  • This includes securely storing their personal data (e.g. addresses, contact details, bank information) and only using it for employment purposes.

Contact us today to find the ideal long-term placement for your family. Let us help you hire a nanny, housekeeper, or domestic staff who meets your specific needs

 

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