Don’t be floored when you hire home help

Hiring someone to work in your home can feel like a leap into the unknown. From the complexities of finding the right person for the job to ensuring you comply with employment laws, the process can seem daunting. This article sets out our top tips to help you avoid the common pitfalls before you let someone into your home – and onto your payroll.

We have touched upon the below key issues, which are important to think about after you have considered the employment status of the individual. If you would like advice as to the employment status of those you engage, to include whether they would be an employee or self-employed please get in contact with a member of the employment team as this is a complex area.

Service occupancy agreement

In some cases, your domestic staff may need to live on your premises to do their job. This is often the case with roles like housekeepers or au pairs, who commonly have these types of arrangements. If an employee needs to live in your premises for a job either

• as it is essential for the performance of their duties, or
• because it is required to allow the better performance of their duties, it’s essential to formalise the agreement through a service occupancy agreement.

A service occupancy agreement gives an employee a personal licence to occupy the premises, for so long as they are employed by the employer. Once the employment ends, so does their right to stay in the property. Essentially, their living arrangement is tied directly to their employment status, so its important to document this relationship to avoid any misunderstandings about living arrangements down the line.

National minimum wage

All workers must receive at least the National Minimum Wage (NMW), which is updated annually and varies depending on the age of the employee, the current rates are

Not paying your worker the NMW is a criminal offence, and HMRC can demand that any arrears be paid back immediately. So, keeping track of the correct wage rates is not just important—it’s essential.

Equality Act 2010

All workers have the right not to be discriminated against, whether they are applying for a job, are an actual worker, or a former worker. Discrimination is unlawful if it is related to one of the protected characteristics set out in the Equality Act, namely:

• age;
• disability;
• race;
• religion or belief;
• sex;
• sexual orientation;
• gender reassignment;
• marriage/civil partnership; or
• pregnancy/maternity.

As an employer, you need to be aware of this protection. Not only can workers make claims for direct (where an individual is treated less favourably because of a protected characteristic) or indirect (where an act, decision or policy (broadly speaking) which are not intended to treat someone less favourably. But which have the effect of disadvantaging a group of people with a particular protected characteristic) discrimination, but they can also bring cases for harassment (unwanted conduct related to a protected characteristic which has the purpose of violating the individuals dignity or creating an intimidating, hostile, degrading humiliating or offensive environment) or victimisation (where an individual is subject to a detriment for doing, or who might do a protected act) related to any of these characteristics. There are also claims in relation to specific protected characteristics, such as the duty to make reasonable adjustments should one of your workers have a disability.

But here’s the kicker: there’s no defence for direct discrimination, and no compensation cap for any discrimination claims. This means that if a worker wins a discrimination case, the costs can be significant, with the highest compensation awarded for a discrimination claim in the year 2023/2024 being £995,128.  Understanding your responsibilities is crucial to avoid these costly legal battles.

Worker Protection (Amendment of Equality Act 2010) Act 2023

In addition to the above, on 26 October 2024, new requirements under the Worker Protection (Amendment of Equality Act 2010) were introduced. This new legislation introduces a proactive duty on employers to take reasonable steps to prevent sexual harassment in the workplace, which also includes against third parties. See our blog which explores this further here.

This right will only be strengthened in the Employment Rights Bill (predicted to come into force in 2026), which will ensure that there will be a duty to take “all” reasonable steps, and will also actively prohibit third party harassment. On the face of it, this puts the compliance bar much higher, however much depends on further amendments to the Bill and what will ultimately end up being adopted into law. Having said that, the government’s intention is clear: employers need to show a zero-tolerance approach to sexual harassment, including sexual harassment committed by third parties. Homeowners need to be aware of this and be mindful of third parties who are welcomed into the home and who have interactions with their staff.

Working Time Regulations

Another key piece of law is the Working Time Regulations (WTR). Under the WTR there are protections in place for employees and workers in relation to their working hours, as well as rest breaks and entitlement to annual leave. For example, a worker has the right to not work more than 48 hours a week unless an “opt-out” agreement has been entered into. But the complexity lies in the fact that domestic workers often work non-traditional hours or have irregular schedules, making it difficult to track the number of hours worked. Keeping records is also essential to show you are complying with the WTR.

Additionally, some domestic workers might be exempt from certain aspects of the WTR. To ensure you’re complying with all the relevant laws, we recommend seeking legal advice as to your specific circumstances.

How we can help

As we have set out above, there are a plethora of considerations when engaging a domestic worker for your household.  We have touched on some of the most important aspects, but if you have any questions, or would like to get advice as to your particular situation, please contact Holly Milne-Peasey or the employment team.