As of April 2020, it is a legal requirement that an employer must provide their employee with a contract on or before their first day of work. This is one of the first things you need to consider when employing household staff. Although employment responsibilities can often seem intimidating, a comprehensive employment contract will help both the employer and the employee in the long run. Here is the need to know about employment contracts.
What is an Employment Contract?
An employment contract is a legally binding document that lays the foundations for a good working relationship, helps to protect both parties in preventing conflict, and mitigating risk. A contract should set out an employee’s employment conditions, rights, responsibilities, and duties. The more thorough the contract, the less room there is for issues to arise further down the line.
Do Domestic Staff need an Employment Contract?
All UK employees including household staff, must receive a contract of employment, or at the very least a statement of employment terms. If it is nearing an employee’s start date, or they have already begun working and they have not yet received their contract, they are within their rights to request one.
What to include in a Domestic Employment Contract?
A domestic employment contract should contain the terms and conditions of employment including:
- Start date
- Hours of work
- Starting salary (we recommend agreeing a gross salary, and using this figure within the contract.)
- Holiday Entitlement and any other paid leave (i.e. sick pay/leave, compassionate leave)
- Probationary and notice period
- Details of any training the employee must undertake (including any training not paid for by the employer)
- Details of any additional benefits offered by the employer
- Some optional terms you may want to consider Privacy/Confidentiality and Relocation.
The contract must also adhere to employment law. This can be in regards to meeting minimum wage, holiday entitlement, and more. If you’re putting a contract together yourself, it’s important to familiarise yourself with these standards set by the UK government to ensure a fair working environment.
What Happens if a Domestic Employment Dispute Arises?
Whilst most domestic employment scenarios are successful, unfortunately there are rare cases where disputes do arise. In these instances the first port of call would be to refer to any relevant clauses within the contract of employment, as this will give you a better understanding of what has been agreed.
If you were to seek further legal support or advice, the contract is likely to be the first thing that is requested. This is why it’s vital to have the right Contract of Employment in place, and to make yourself familiar with the terms laid out in it.
Things to Consider as a Domestic Employer
What else does a domestic employer need to consider when employing staff to work in their home?
Household employment responsibilities don’t stop at putting together a contract. You will be required to set up a PAYE scheme to produce payslips and declare the necessary Tax and NI contributions, each time you pay your employee. Legally you are required to offer a pension to your employee, and to take out Employers Liability Insurance to cover damages and/or claimant’s costs.
How Can Polo & Tweed Help?
If you’re still feeling intimidated by the process of taking on a domestic worker… Stafftax have 15 years of experience in domestic recruitment. Stafftax can help to cover all of your compliance needs including Pensions, Contract of Employment and HR advice. They can help make your employment responsibilities easier! If you need help with your domestic staff search, contact us online or by calling +44(0)203 858 0233 to speak with one of our recruitment consultants.