Navigating Changes to Your Domestic Employee's Employment

If your domestic employee's role is no longer needed or you no longer require them to work as many hours, this may be considered redundancy, and you’ll need to follow a fair and legally appropriate process. This generally includes consultation, considering alternatives, providing the correct notice and redundancy pay where applicable, and ensuring the process is fair throughout. From 1 January 2027, unfair dismissal protection is due to apply after just six months of employment, with the compensation cap also being removed. If you’re considering reducing your employee's hours or ending their employment, speak to Stafftax's HR Team before taking action so they can help you follow the correct process.

Written by Laura Eason, Head of Customer & Operations

Estimated reading time: 2 minutes

As we approach a time of year when household circumstances and employment arrangements can change, we want to remind you of the importance of following the correct process if your domestic employee’s role is no longer available.

For Stafftax customers, our HR Team is always on hand to support you and help ensure that the correct process is followed when redundancy arises.

Redundancy or resignation?

It’s important to understand the difference between resignation and redundancy.

If your domestic employee chooses to leave their employment, this is classed as a resignation.

However, if you make the decision that the role is no longer available or that you no longer require them to work as many hours, this may be considered redundancy. In these circumstances, employment law requires you to follow a fair and appropriate process.

When might redundancy apply?

Some examples include:

You have decided to move to another location and your employee is unable to commute to the new location.
Your personal or employment circumstances have changed and you need to reduce your employee’s contracted hours.

What does a fair redundancy process involve?

Where redundancy applies, you will generally need to:

Hold a fair and meaningful individual consultation with your employee.
Consider any alternatives to redundancy.
Provide the correct redundancy pay, where applicable.
Give the correct notice.
Follow a fair and reasonable process throughout.

Even where you employ just one person, failing to follow a proper redundancy process can potentially result in an unfair dismissal claim.

Important upcoming employment law change

From 1st January 2027, the qualifying period for ordinary unfair dismissal protection in the UK is due to be reduced from two years to six months.

At the same time, the statutory cap on compensatory awards for unfair dismissal is due to be removed. This means employers could face significantly greater financial risk if the process is not correctly followed.

If you are a Stafftax customer, our HR Team is here to help. If you are considering reducing your domestic employee’s hours, ending a role or making an employee redundant, please speak to us before taking action. We can help you understand the correct process and ensure you are supported at every stage.

Please note: This article provides general guidance and is not a substitute for individual employment law advice.