Are you hiring help in your home?

We consider the pluses and minuses of hiring directly and via an agency and explode some current myths.

Whether it’s a nanny, driver, carer or gardener, when you need help at home, we face the decision of whether to hire directly as an employee or to use an agency to provide them. Each option has its own set of advantages and disadvantages, and understanding these can help us make an informed decision that best suits your family’s needs.

One of the primary advantages of employing staff directly is the level of control and personalisation it offers. You can select the candidate who most aligns closely to your family’s routine, your children’s or the parents’ specific needs and the person who gives you a sense of comfort that your loved one(s) will be supported.  An employment arrangement usually means the individual works exclusively for you, which can be particularly important when you want to a stable and consistent arrangement with the nanny or carer.

Additionally, employment means you avoid agency fees and have the flexibility to negotiate salary and benefits directly, so hiring directly can be more cost-effective. This is particularly true if you plan on hiring several people as the agency fee multiplies for each staff member.   There are legal requirements on you as an employer, as you’d expect.  We detailed these in our article and the key financial ones are:

• Paying at least the minimum wage (currently £12.21/hour for adults)
• Taking out insurances (e.g. employer’s liability insurance, car insurance)
• Registering as an employer with HMRC, and
• Complying with tax and National Insurance Contribution (NIC) obligations.

It’s still common for gardeners and staff who work for multiple clients through their own business, like chefs, to be self-employed.  They are responsible for their tax and you would simply need to agree with them (and document) what your respective obligations are (frequency of service, payment, notice periods etc.).  Self-employment remains a legitimate approach, despite the myths, if they are genuinely running their own business.   They (and you) would not fall foul of the IR35 rules as long as they are not employees being disguised as having their own business.

Employing staff does increase your responsibilities and this can be daunting the first time you hire. You need to navigate the requirements of employment law in the country where they work, which you may need advice on.  In England, that means providing an Employment Contract and providing a safe working environment, free from harassment.  You’re also responsible for ensuring the employee is legally allowed to work and resolving any performance concerns that arise (e.g. time-keeping, attendance), which can take time and involve confrontation.

The main drawback of direct employment is dealing with absences and organising cover for illness and holidays.  If you are employed, you have the right to emergency time off to care for a dependant and to 5 days’ carers leave per year.

The main concern we hear is the fear of employment disputes, such as claims for unlawful deduction of wages or unfair dismissal.  These can be time-consuming and to resolve, but are mercifully rare and usually resolved without any claim.  The press has been full of the “day 1 right” for employees to claim unfair dismissal, but this is a myth.  The law may well change in Autumn 2026, but for now an employee usually needs 2 years’ service to claim this and redundancy pay.

On the other hand, using an agency to provide a carer, nanny or driver can simplify many of these administrative and legal burdens. Agencies typically handle the recruitment, vetting, and payroll.  You should ensure that in your contract with the agency, they ensure all legal requirements are met. This then provides peace of mind, knowing that the person has been thoroughly screened and that the agency will manage any employment-related issues. The other advantage offered by an agency is their ability to provide a replacement in the case of absence.  This is particularly important so you can ensure continuity of care for your loved ones.

However, the convenience of using an agency comes at a cost. Agency fees can be substantial, adding to the overall expense for the care. You may have less control over the selection process and may not have the same opportunity to build a personal relationship with the person who will be in your home. There is also the potential for less stability, as agency staff may be more likely to change assignments or leave the agency.

In conclusion, the choice hiring directly or using an agency involves weighing the benefits of personal control and potential cost savings against the convenience and reduced administrative burden borne by agencies. Parents must also consider the legal implications and be prepared to manage the responsibilities that come with employing directly. By carefully evaluating these factors, you can choose the option that best meets your family’s needs and move between the options as your needs and experience change.