Hiring a nanny, housekeeper, caregiver or driver directly usually makes you an employer. Here is what that means for payroll, contracts, insurance and checks in the USA, UK, Canada, Germany, Australia, the UAE and Switzerland.
When you hire someone to work in your home — a nanny, housekeeper, caregiver or private driver — it can feel like an informal arrangement. In most countries, though, a family that hires someone directly becomes their employer, with real legal responsibilities. Getting this right protects both you and the person you hire.
Are you an employer or a client?
The key question is who controls the work. If you decide the hours, the duties and how the job is done, and the person works only for you, you are usually an employer. If you book a service from an agency or a self-employed professional who sets their own methods and works for many clients, you are usually a client.
Using a licensed agency can shift some employer duties to the agency. Hiring directly — through referrals or a job board — generally leaves them with you.
The five areas every household employer should cover
1. Right to work and background checks
Check that the person is legally allowed to work in your country, and run checks appropriate to the role. Roles involving children or vulnerable adults need the most thorough checks, such as an enhanced DBS check in the UK, a vulnerable sector check in Canada or a Working With Children Check in Australia.
2. Pay and payroll taxes
Pay must meet the applicable minimum wage. Beyond that, most countries expect household employers to run payroll:
- United States: household employers may need to withhold and pay Social Security and Medicare taxes, file Schedule H and issue a Form W-2 once wages pass the yearly IRS threshold.
- United Kingdom: register with HMRC, run PAYE and enrol eligible staff into a workplace pension.
- Canada: register a CRA payroll account, deduct income tax, CPP/QPP and EI, and issue a T4.
- Germany: small household jobs can be registered with the Minijob-Zentrale through the simplified household cheque procedure.
- Australia: you may need to withhold PAYG tax and pay superannuation.
- Switzerland: register for social insurance (AHV/AVS) through your cantonal compensation office.
- UAE: salaries are usually paid monthly through the Wage Protection System or bank transfer under a MOHRE-approved contract.
3. A written contract
A written agreement prevents most disputes. Cover duties, hours, pay, overtime, paid leave, sick pay, notice periods and confidentiality. Several countries — including the UK and Germany — require written terms from the start of employment, and the UAE uses a standard domestic worker contract.
4. Working hours, rest and leave
Domestic workers are entitled to rest breaks, days off and paid holiday under national law. Some places add specific protections: several US states have a Domestic Workers' Bill of Rights, and the UAE's Federal Decree-Law No. 9 of 2022 sets daily rest, a weekly day off and annual leave for domestic workers.
5. Insurance
Check whether you need employers' liability or workers' compensation insurance, and confirm your home insurance covers people working in your home. Health insurance is required for domestic workers in the UAE, and accident insurance is compulsory for employees in Switzerland.
A simple checklist before your new hire starts
- Right-to-work and background checks completed
- Registered as an employer where required
- Payroll set up, or a payroll service chosen
- Written contract signed by both sides
- Insurance confirmed
- Emergency contacts and house rules shared
Getting help
Household payroll services exist in most countries and can handle registration, payslips and filings for a monthly fee — often worth it for peace of mind. For anything specific to your situation, speak to a payroll adviser or the relevant authority.
Each of our domestic staffing pages includes a summary of the employer rules for that country alongside local pay ranges. If you are hiring a nanny, our step-by-step nanny hiring guide walks through the whole process.
This article is general guidance, not legal or tax advice. Rules change and vary by country, state and region.