Hired Someone? Here's What UK Law Now Expects of You

For many people, the decision to hire a personal assistant or domestic helper begins informally. A recommendation from a neighbour, a conversation at the school gate, a quick agreement over coffee. Before any contract is drafted or any payroll system is considered, an arrangement is in place — and with it, a set of legal obligations that most first-time employers never anticipated.

If this sounds familiar, you are not alone. Thousands of people across the UK find themselves in exactly this position each year: partway through an arrangement, perhaps weeks in, before realising that employing someone at home carries genuine legal weight. The good news is that the situation is entirely recoverable. The key is knowing what to address, and in what order.

The Moment You Became an Employer

Under UK law, the employment relationship is not defined by paperwork. It is defined by conduct. If you pay someone to perform work under your direction, at times and in a manner you control, you are almost certainly their employer — regardless of whether either party used that word.

This matters because it triggers a cascade of obligations. Statutory rights including the National Minimum Wage, paid annual leave, and protection from unlawful deduction of wages apply from the first day of work. There is no grace period, and there is no exemption for domestic settings.

If your arrangement began informally and you have since recognised that you are functioning as an employer, the priority is to address the compliance gaps systematically rather than to panic.

Registering with HMRC: Your First Practical Step

The most pressing administrative obligation for any new household employer is to register with HM Revenue and Customs as an employer. This must be done before the first payday — or, if you have already passed that point, as promptly as possible.

Registering allows HMRC to issue you a PAYE reference number, which you will need to operate payroll correctly. You can register online via the Government Gateway. Once registered, you are responsible for calculating and deducting income tax and National Insurance contributions from your employee's wages and remitting these to HMRC on a regular basis.

Many first-time household employers are tempted to treat a PA as self-employed to avoid this complexity. This is a significant risk. HMRC applies a specific set of tests to determine employment status, and domestic workers — who typically work set hours, use the employer's equipment, and cannot send a substitute — will rarely meet the criteria for genuine self-employment. Misclassifying an employee carries financial penalties and can result in backdated tax liability.

What You Must Provide in Writing

From the first day of employment, your PA is entitled to a written statement of particulars — commonly referred to as an employment contract. This document must cover the basics: the job title, hours, rate of pay, holiday entitlement, and notice periods on both sides.

If you have been operating without a written agreement, draft one now. It does not need to be a lengthy legal document, but it must be clear, honest, and consistent with the arrangement as it actually exists. Backdating contracts is inadvisable; instead, issue the document as a formalisation of the current arrangement with a clear start date.

The written statement must be provided on or before the employee's first day. If that date has passed, issue it without further delay.

Holiday Pay and Working Time

Under the Working Time Regulations 1998, employees are entitled to 5.6 weeks of paid annual leave per year. For a full-time PA working five days a week, this equates to 28 days, including bank holidays if you choose to count them.

For household employers who hired informally, it is worth checking whether holiday has been accruing in the background. If your PA has been working for several months without taking leave, they may have built up a meaningful entitlement. Establishing the correct figure now — and agreeing a plan for how it will be taken — is far preferable to addressing it at the point of resignation or dispute.

Auto-Enrolment Pension Obligations

If your PA earns above the auto-enrolment earnings threshold (currently £10,000 per year) and is aged between 22 and State Pension age, you are legally required to enrol them in a qualifying workplace pension scheme and make employer contributions.

This obligation applies to household employers in exactly the same way it applies to commercial businesses. The Pensions Regulator does not distinguish between the two. If you have not yet set up a pension scheme, identify your staging date via The Pensions Regulator's website and act accordingly. Penalties for non-compliance can be substantial.

Insurance You Cannot Afford to Overlook

Employers' liability insurance is a legal requirement the moment you take on an employee. This cover protects you if your PA suffers an injury or illness as a result of their work in your home and brings a claim against you. The minimum required cover is £5 million, though many household employers opt for more.

Standard home insurance policies do not typically include employers' liability. You will need a specialist domestic employers' policy, which can usually be arranged through a broker or directly with insurers who cater to household employment.

Building Confidence Going Forward

Becoming an employer without fully understanding what that meant is a common experience. The legal framework can feel imposing when encountered all at once, but each element has a clear purpose: to ensure that the person working in your home is treated fairly and that you are protected in the event of a dispute.

Address each obligation in sequence. Register with HMRC. Issue a written contract. Confirm holiday accrual. Set up a pension. Arrange appropriate insurance. Once these foundations are in place, you will find that day-to-day management becomes considerably more straightforward — and that both you and your PA can work within a structure that is clear, fair, and legally sound.