Set up and run your duties as a domestic employer

A. Register as an employer and operate PAYE

If you pay your domestic employee at or above the Lower Earnings Limit — or if they already have another job or receive a pension — you must register as an employer with HMRC and operate Pay As You Earn (PAYE) in real time (RTI). That means deducting income tax and National Insurance from each payment and reporting every payday. Even if earnings fall below the threshold, keep records of what you pay.

HMRC provides a simplified PAYE process for domestic employers. You can use HMRC's Basic PAYE Tools or approved payroll software, or ask a payroll provider to do it for you.

B. Pay at least the National Minimum Wage

You must pay your domestic employee at least the National Minimum Wage (or the National Living Wage if they are 21 or over) under the National Minimum Wage Act 1998. HMRC enforces on behalf of workers and can recover arrears plus impose penalties.

There is a narrow "family worker" exemption (National Minimum Wage Regulations 2015, regulation 57): only a genuine family member (such as a spouse, parent, child, sibling, uncle, aunt, nephew or niece) who lives in your home and shares in the family's tasks and leisure is exempt. Au pairs and other non-family live-in workers are not exempt — you must pay them at least the NMW. If you provide accommodation, the accommodation offset applies — you can count a limited amount of its value towards minimum wage pay. Take care: getting this wrong can mean back-pay, penalties and naming by HMRC.

C. Give a contract and meet employment rights

Your domestic employee has the same statutory rights as any other employee under the Employment Rights Act 1996. You must provide a written statement of employment particulars on or before their first day. They are entitled to paid annual leave (5.6 weeks under the Working Time Regulations 1998), rest breaks, itemised payslips, statutory sick pay, statutory notice periods and — after qualifying service — protection from unfair dismissal and statutory redundancy pay.

The Working Time Regulations 1998 apply: you must not require your employee to work more than an average of 48 hours a week (unless they opt out in writing), and you must provide daily and weekly rest breaks and the full holiday entitlement.

D. Auto-enrol into a workplace pension

Under the Pensions Act 2008 you must auto-enrol any eligible employee (aged 22 to State Pension age, earning above the earnings trigger) into a qualifying workplace pension scheme and make employer contributions. This applies even though you are a household, not a business. The Pensions Regulator oversees compliance and can impose fines for non-compliance.

E. Verify right to work

Before your employee starts, you must check that they have the right to work in the UK. The process is the same as for any employer: see the original documents (or use the Home Office online checking service), take copies, and keep records. If you employ someone who does not have the right to work, you can face a civil penalty of up to £45,000 per worker (£60,000 for a repeat breach).

F. Look after your employee's health and safety

The formal duties under the Health and Safety at Work etc. Act 1974 are disapplied for domestic servants in a private household (section 51). You are not subject to HSE enforcement or the written risk-assessment duty that applies to commercial employers. However, you still owe your employee a common-law duty of care: you must take reasonable steps to keep the working environment safe. In a domestic setting that means providing safe equipment, thinking about risks from manual handling, cleaning chemicals and working at height, and keeping areas your employee uses in good repair. If your employee is injured because of your negligence, you can be liable in a civil claim — and since you are exempt from compulsory employers' liability insurance, you would bear the cost personally unless you hold voluntary cover.

G. Key exemptions for domestic employers

Several duties that commercial employers carry are disapplied for domestic employers:

• Health and Safety at Work etc. Act 1974 — section 51 disapplies Part I for anyone who employs another as a domestic servant in a private household. You still owe a common-law duty of care (see section F above).
• Employers' liability insurance — the Employers' Liability (Compulsory Insurance) Act 1969 exempts domestic servants employed in a private household. You are not legally required to hold employers' liability cover, though voluntary insurance is strongly advisable in case your employee is injured at work.
• Fire safety order — the Regulatory Reform (Fire Safety) Order 2005 applies to non-domestic premises only. Your private home is domestic premises and is outside its scope. You should still have a working smoke alarm and a fire escape plan, but the formal fire risk assessment duty does not apply.

H. Meet your equality duties

As an employer you must not discriminate against, harass or victimise your employee because of a protected characteristic. In Great Britain this is governed by the Equality Act 2010; in Northern Ireland separate equality legislation applies, enforced by the Equality Commission for Northern Ireland. This includes recruitment: you must not discriminate in how you advertise, interview or select candidates.

I. Handle personal data lawfully

If you process personal data about your employee beyond what is purely personal or household in nature — for example, if you use a payroll service or keep records for HMRC — you may need to comply with the UK GDPR and the Data Protection Act 2018. The household exemption (UK GDPR Article 2(2)(a)) covers processing that is genuinely personal, but once you share data with third parties (a payroll bureau, HMRC, a pension provider) the exemption may not fully apply. In most cases household employers will not need to register with the ICO, but you should handle your employee's personal data fairly and keep it secure.

What to do next

This guide covers your core duties and the key exemptions. Confirm you have everything in place with the domestic employer compliance checklist.