What UK Private Carer Employers Need to Know About the Employment Rights Overhaul

If you employ a carer directly in your home, you are legally an employer.

That means employment law changes can affect you, even if you only employ one person.

One of the most significant upcoming changes is the reduction in the qualifying period for ordinary unfair dismissal claims in Great Britain. The Government has confirmed that this is expected to reduce from two years to six months from 1 January 2027.

That means the first six months of employment will become much more important.

What Is Changing?

Currently, employees generally need two years' service before they can bring an ordinary unfair dismissal claim.

From 1 January 2027, that qualifying period is expected to reduce to six months in England, Scotland and Wales.

For families employing a carer, this means there will be less time to assess suitability for the role and address concerns before unfair dismissal rights apply.

What Should You Do?

This is a good opportunity to review your employment arrangements.

Make sure your carer's contract clearly sets out the probation period, notice provisions and any review process you intend to follow.

It's also important to remember that probation does not change your responsibilities as an employer. Your carer should still be set up correctly on payroll, paid through PAYE where required, receive payslips, accrue holiday entitlement and be assessed for workplace pension enrolment from the start of their employment.

Regular conversations during probation can help ensure expectations are clear and give both you and your carer the opportunity to raise concerns early.

What About Northern Ireland?

Families employing a carer in Northern Ireland are not currently affected by this change.

Employees in Northern Ireland generally need one year's service before they can bring an ordinary unfair dismissal claim, and there are currently no proposals to reduce that qualifying period.

If your carer works in England, Scotland or Wales, the new six-month qualifying period is expected to apply from 1 January 2027.

Other Employment Law Changes To Remember

Alongside the upcoming probation period reforms, several payroll and employment law changes have already taken effect in 2026.

National Living Wage and National Minimum Wage rates increased earlier this year, while Statutory Sick Pay rose to £123.25 per week. Statutory Maternity Pay and other family-related payments also increased to £194.32 per week.

If you employ a carer directly, you are responsible for applying these changes correctly, operating PAYE where required, and meeting your obligations as an employer. Taking time to review your payroll arrangements now can help you stay compliant and avoid problems later.

Need Support?

Carer Payroll UK offers a complete payroll service for families who employ a carer in their own home. Our service allows you to meet all your statutory obligations as an employer, saving you time and ensuring you don't receive any penalties from HMRC for late or incorrect filing.

Let us help you navigate these upcoming changes and manage your carer's payroll with ease.