There probably isn't a legal obligation without a contract, though a moral one for fairness to a 30 year employee in your home. I researched your question, and found the norm to be a week's wages for every year she has worked for you, minimum. That said, if she is age of retirement, you may want to increase that amount of severance to include a retirement amount.

Oh, and tax ramifications should be considered for her in the disbursement of the funds.

Many questions come to mind with this situation. Has she been paying Social Security so that she will be able to collect those benefits? If not, then does she also clean for others? Does she have other income? Do you consider her a part of the family? Thirty years is a long time and I am sure she is not as quick as she once was. Perhaps, asking her if it would be helpful to her to have an assistant with the understanding that her salary would be reduced somewhat. Or perhaps she is aware of her situation but feels a loyalty to your family to continue albeit not at her previous abilities. If so, she might be amenable to training someone to take on her duties. She may even have recommendations. There are many ways to handle these circumstances; I would want to make sure I handled things in a way that I would not regret in the future.

I'm with whynot.

Thirty years is a long time. This person is part of you, part of your home. I would work with her on hiring a helper, then working toward a happy retirement when she is ready.

It sounds to me like you may actually need two housekeepers with your "substantially increased" sized home after renovation. Certainly something to consider. Additionally, if your housekeeper is thinking of her own retirement, she may feel less concerned for you knowing you are not left high and dry with no one else to lean on. I would consider myself extremely fortunate to have had a trusted, dependable housekeeper or any employee for thirty years. I don't know how you put a value on her. You may not find her to be so easily replaceable though.

Thanks to all for your suggestions. I agree that we'll need more than one person and will broach the subject with our current housekeeper.