News / Events
PayPacket Limited,
2nd Floor,
The Hub,
40 Friar Lane,
Nottingham.
NG1 6DQ.
Company Registered in England & Wales.
Reg. No. 5592310
Employers may soon need to keep employment records for longer, as the Government moves ahead with plans to extend Employment Tribunal time limits.
Draft regulations recently published by the Government are expected to increase the time limit for bringing breach of contract claims in the Employment Tribunal from three months to six months. This follows wider changes already announced under the Employment Rights Bill, which will extend the time limit for many Employment Tribunal claims from three months to six months.
While the change may appear technical, it could have practical implications for employers – particularly those who employ personal assistants and care workers through Direct Payments, Personal Health Budgets (PHBs), or their own funds.
Currently, many Employment Tribunal claims must be brought within three months of employment ending or the issue arising. The proposed changes would extend that period to six months for most claims, including breach of contract claims.
This means a former employee may have significantly longer to start legal proceedings than they do today.
Many individual employers assume that once an employee has left, employment records only need to be retained for a relatively short period. However, longer claim deadlines mean employment disputes could arise many months after employment has ended.
In reality, the window may be longer still. The Acas Early Conciliation process can extend deadlines, and Employment Tribunals already have discretion in certain circumstances to allow claims outside the standard time limits.
For employers, this highlights the importance of maintaining accurate employment records and ensuring documentation is retained for an appropriate period following termination of employment.
Good record keeping has always been one of the most effective ways to protect yourself as an employer. Important documents may include:
Having clear records can make it much easier to respond if a question or dispute is raised in the future.
Thousands of people across the UK employ personal assistants using Direct Payments, Personal Health Budgets and self-funded care arrangements. Many become employers unexpectedly and can be surprised by the range of employment law responsibilities that come with employing staff.
Longer Employment Tribunal claim deadlines mean it is even more important for Direct Payment employers to keep accurate payroll records, contracts, timesheets, holiday records and employment documentation.
Good record keeping not only supports compliance but can also help employers respond confidently if questions or disputes arise following the end of employment.
People employing carers through Direct Payments are often “accidental employers” who never expected to take on employment responsibilities. Employment law can feel complex, particularly when balancing care needs with legal obligations.
These proposed changes are a useful reminder that employment responsibilities do not always end the day employment ends. Maintaining organised employment records and obtaining professional support when needed can help reduce risk and provide peace of mind.
PayPacket is one of the UK’s leading specialist Direct Payments payroll providers, supporting more than 8,000 employers who employ personal assistants and carers through Direct Payments, Personal Health Budgets and self-funded care arrangements.
Our specialist payroll service helps Direct Payment employers meet their responsibilities by maintaining accurate payroll records, producing compliant payslips and providing practical guidance in plain English.
We understand that many employers are arranging care for themselves or a loved one and may have little previous experience of payroll or employment law. Our focus is on making the process simple, compliant and stress-free.
As further details of these changes become available, we will continue to keep our clients informed.
If you need help managing your responsibilities as an employer, contact us to find out how we can simplify payroll and employment administration.
Since 2005, PayPacket has specialised in payroll services for people employing personal assistants and carers through Direct Payments, Personal Health Budgets and self-funded care arrangements.
Today, we support more than 8,000 employers across the UK, helping them meet payroll and employment responsibilities with confidence. Our specialist knowledge of Direct Payments payroll, employment law and managed accounts allows us to provide support tailored to the unique needs of individual employers.
The Government has proposed extending many Employment Tribunal claim deadlines from three months to six months, with implementation expected from October 2026.
Yes. Individuals who employ personal assistants through Direct Payments or Personal Health Budgets have the same employment law responsibilities as other employers and should maintain appropriate employment records.
Employers should retain employment contracts, payroll records, payslips, holiday records, sickness records and other employment documentation to help demonstrate compliance and respond to any future queries or disputes.
Yes. PayPacket provides specialist payroll services for Direct Payment employers, Personal Health Budget recipients and self-funders, helping employers manage payroll and employment responsibilities with confidence.