When a Carer Isn’t Working Out — What Direct Payment Employers Need to Know

Many Direct Payment employers assume a simple solution:
“If it’s not working, I can just let them go.”
Unfortunately, it’s not that simple.

The reality: you are an employer
If you receive Direct Payments and employ a carer or personal assistant, you are legally an employer.
That means ending employment must follow a fair and lawful process—even when the decision feels obvious.

Why length of service now matters more
Right now, most employers rely on the two-year qualifying period for unfair dismissal.
But this is changing.
From January 2027, the qualifying period reduces to six months.
This means:

Once a carer has 6 months’ service, they can bring an unfair dismissal claim
Many situations that previously carried low risk will carry real legal exposure
Informal conversations and “quiet words” will no longer be enough

A situation that feels straightforward—whether at 6 months, 10 months, or later—can quickly become a legal issue if not handled properly.

Where things often go wrong
We regularly see the same pattern:

• Concerns raised informally, but not recorded
• No clear expectations set at the start
• No structured review or improvement plan
• A sudden decision to dismiss

From your perspective, the outcome feels justified.
From a tribunal’s perspective, it may look unfair.
That gap is where problems start.

The key mistake: confusing care with employment
It’s completely reasonable to feel unhappy with the care you’re receiving.
But employment law still applies.
You can decide a carer isn’t right for you—
—but you must still follow a fair process to end employment.

What you should be doing instead
A simple, structured approach protects you:

• Set clear expectations from day one
• Address concerns early and clearly

Keep written notes of conversations

• Give the carer an opportunity to improve
• Follow a fair process before dismissal

This doesn’t need to be complicated.
But it does need to be consistent.

The outcome doesn’t change — the risk does
You don’t have to keep a carer who isn’t right for you.
That hasn’t changed.
What has changed—and will change further in 2027—is the level of risk if the process isn’t handled correctly.