Employment Rights Act 2025:
What Private Household Employers Need to Know Before January 2027
Employing private household staff brings invaluable support to family life, but it also comes with formal employer responsibilities. Whether you employ a nanny, housekeeper, chauffeur, gardener, private chef, estate manager or carer, UK employment law still applies within the home.
With the Employment Rights Act 2025 now being introduced in phases, private household employers should take time to review their contracts, probation arrangements and staff management processes before further changes take effect.
The most significant upcoming change for many household employers is the reduction of the qualifying period for ordinary unfair dismissal protection from two years to six months, due to apply from 1 January 2027. The Employment Rights Act 2025 received Royal Assent on 18 December 2025, and the government has confirmed that the reforms are being phased in across 2026 and 2027.
Why this matters for private households
Many private employers do not think of themselves in the same way as a company or corporate employer. A household may feel informal, personal and built around trust, but the legal responsibilities remain very real.
GOV.UK guidance states that you are usually considered the employer of a nanny, housekeeper, gardener or anyone else working in your home if you hire them and they are not self-employed or paid through an agency. This means you are responsible for matters such as employment rights, contracts, payslips, tax deductions, payroll, employers’ liability insurance and statutory benefits.
For families and Principals employing staff directly, the new legislation makes it even more important to get the foundations right from day one.
What is changing from 1 January 2027?
From 1 January 2027, the qualifying period for protection against ordinary unfair dismissal is set to reduce from two years to six months. This means that an employee whose effective date of termination is on or after 1 January 2027, and who has six months’ service, will have the right to bring an unfair dismissal claim at an employment tribunal.
The same guidance also confirms that the qualifying period for requesting written reasons for dismissal will reduce from two years to six months and employers using contractual probation periods are encouraged to consider how those probation arrangements will operate once the six-month qualifying period is in force.
ACAS also notes that, from 1 January 2027, the limit on the compensatory award for unfair dismissal will be removed.
In practical terms, the traditional “wait and see” approach to a new hire will become far less forgiving. A household employee who remains in post beyond six months may have substantially greater protection than many private employers are used to managing.
What has already changed in 2026?
Some employment changes have already begun. From April 2026, government guidance confirms changes including wider access to Statutory Sick Pay, with no earnings threshold and no three-day waiting period and day-one entitlement to paternity leave and unpaid parental leave.
These reforms form part of a wider shift towards stronger employee protections. For private households, this means employment documentation, communication and management processes should be treated with the same level of care as any other professional employment relationship.
Probation periods will need closer attention
Probation periods are common in private household employment. They can be helpful for both parties, giving the employer and employee time to assess whether the role, working style and household environment are the right fit.
However, from January 2027, a probation clause will not remove the need for fair, well-documented decision-making once an employee has six months’ service. Employers should ensure that probation periods are clearly written into the contract, that review dates are diarised and that any concerns about performance, conduct or suitability are addressed early and professionally.
A well-managed probation period should include:
- A clear job description and reporting structure
- Written expectations around duties, working hours, confidentiality and household standards
- Scheduled check-ins during the probation period
- Notes of any concerns raised and support offered
- A documented final probation review
- Professional advice before extending probation or ending employment
For roles involving children, vulnerable adults, travel, estate management or high levels of discretion, these steps are not just administrative. They protect the household, the employee and the working relationship.
Fixed-term and temporary household roles also need care
Many families employ temporary staff for seasonal periods, travel, maternity cover, school holidays or busy summer months. It is important to remember that the non-renewal of a fixed-term contract can count as a dismissal for unfair dismissal purposes and this position remains unchanged under the Employment Rights Act 2025. From 1 January 2027, if an employee has at least six months’ qualifying service, the non-renewal of their fixed-term contract will need to amount to a fair dismissal.
This is especially relevant for households that regularly extend temporary arrangements or allow short-term roles to evolve into longer-term employment. What begins as a summer nanny, travel nanny, temporary housekeeper or interim estate role can quickly become a more formal employment relationship.
What private household employers should do now
January 2027 may seem some distance away, but the decisions made during 2026 could have legal consequences once the new rules apply. Household employers should use this period to review how they hire, contract and manage staff.
- Review employment contracts
Every household employee should have a clear, up-to-date contract. GOV.UK guidance confirms that anyone you employ must have an employment contract, be given payslips, not work more than the maximum hours allowed and be paid at least the National Minimum Wage.
Contracts should reflect the reality of the role, including duties, hours, salary, accommodation where relevant, travel requirements, confidentiality, notice periods, probation terms and holiday entitlement.
- Check probation clauses
A probation clause should be practical, clear and actively managed. It should not sit in the contract unused. With a six-month unfair dismissal qualifying period coming into force, households should take advice on whether existing probation periods still offer the right level of structure and protection.
- Keep better records
Private households often rely on verbal conversations. While this may feel natural, it can create difficulties if a dispute arises. Employers should keep records of working hours, holiday, sickness, performance discussions, disciplinary matters, contract changes and salary adjustments.
- Act early when concerns arise
If a staff member is not meeting expectations, address concerns promptly and fairly. Delaying difficult conversations can make matters more complicated, particularly where an employee is approaching six months’ service.
- Take advice before dismissal or non-renewal
Dismissal decisions should not be rushed. This applies to permanent staff, fixed-term staff and temporary staff whose contracts may have been extended. Seeking professional advice before taking action can help reduce risk and ensure the process is handled appropriately.
How Eden Private Staff can support your household
At Eden Private Staff, we understand that every household is unique. A successful placement is about far more than filling a vacancy. It requires careful matching, discretion, clarity and a professional recruitment process from the outset.
Whether you are hiring a nanny, housekeeper, chauffeur, private chef, gardener, estate manager, maternity nurse or temporary travel support, Eden can help you approach the process with confidence. We support clients by understanding the role in detail, presenting suitable candidates and helping households think carefully about the long-term requirements of the position.
As employment law continues to evolve, choosing the right person — and putting the right structure around the role — has never been more important.
Preparing now will reduce risk later
The Employment Rights Act 2025 is a timely reminder that private household employment should be treated professionally from the very beginning. A clear contract, a well-managed probation period and an informed hiring process can help prevent misunderstandings and protect the household relationship.
For families planning to hire in 2026, now is the right time to review current arrangements and ensure any new appointment is set up properly from day one.
Looking to hire private household staff?
Contact Eden Private Staff to discuss your requirements and find experienced, carefully matched candidates for your household.
This article is for general information only and does not constitute legal advice. Employment law can change and individual circumstances vary, so private household employers should seek professional legal or HR advice where required.
