Parental Choice drafts bespoke employment contracts for its clients who employ nannies and domestic staff in their home. Below are a number of common questions that we get asked regularly:
Q. When do I need to have an employment contract in place?
A. You must have an employment contract with your nanny in place within 2 months of their start date.
Q. Does it make a difference if my nanny is part time?
A. No. Part time or full time you still need an employment contract. Anyone working with you for 2 months or more must have an employment contract even if their contract is only fixed term.
Q. What does the nanny employment contract need to include?
A. Your nanny employment contract must contain all of the terms and conditions that you have agreed upon, including:
- Personal details of the employer and the nanny
- The start date
- Place of work
- Hours of work
- Sick leave entitlement
- Maternity leave entitlement
- Holiday entitlement
- Pension entitlement
- Redundancy entitlement
- Disciplinary procedure
- Any other benefits you are making available to your nanny, such as a car or accomodation
- Period of notice
- Starting salary
Q. What information do I need to include about the salary I’ll be paying my nanny?
A. When you have agreed a salary you will need to specify if this is gross or net salary; whether it is hourly, daily, weekly or monthly; whether it is paid in advance or arrears; when it is paid and finally whether the you intend to operate PAYE and make National Insurance contributions on the nanny’s behalf. We strongly advise that you state the gross rate to avoid incurring any potential tax liabilities or being responsible for your nanny’s pension contributions or student loan.
Q. Is the contract legally binding?
A. Yes. When you employ a nanny you become an employer and both you and your nanny are obliged keep to the terms of employment as described in it. These terms can of course be changed at any time by mutual agreement.
Q. How do I calculate my nanny’s holiday entitlement?
A. All employees in the UK are entitled by law to 5.6 weeks (28 days) holiday per annum or pro rate if they are working less than 5 days. For a full-time employee that is 28 paid days off per year, of which 4 weeks is standard leave and 1.6 (or 160% of the working week) is 8 of the bank holidays. If the nanny is employed on a temporary basis they are also entitled a pro-rate paid holiday entitlement.
Q. Do I need to comply with Working Time Directive?
A. No. Nannies are exempt from the measures concerning working hours but are entitled to a 20 minute rest break for every six hours worked.
Q. Do I need to set out my Nanny’s redundancy benefits in the employment contract?
A. Yes. Redundancy legislation applies to nannies exactly as it would apply to any other employee. If a nanny is no longer needed because the children have gone to school or you have decided to move or stay at home, then you are making her role redundant and the nanny is entitled to receive the same redundancy benefits as any other employee. If you as an employer terminate your nanny’s employment because she is no longer required, she is entitled to a redundancy payment if she has at least two year’s continuous service with you. Redundancy payments are calculated on the basis of each year’s gross salary and the employee’s age. So:
- Less than 1 month: None
- 1 month to 2 years: 1 week;
- 2 to 3 years 2 weeks
- After 3 years, you will need to add an additional week for each year of continuous employment to a maximum of 12 weeks.
Q. What is a standard period of notice for nannies?
A. Your nanny only has to give you 1 week but your nanny employment contract can set out a duty to give a longer period of notice which has to be reasonable depending on how long it will take you as the employer to find a replacement or the nanny to find another job.
Bespoke Nanny Employment Contracts
If the above seems overwhelming Parental Choice is here to help. Our experienced legal team can provide you with an employment contract tailored to you and your nanny based on your own specific requirements capturing all of the points above.
Online Nanny Payroll
We also provide an easy to use web based nanny payroll system which will take care of all of the complexities surrounding paying your Nanny including calculating how much tax to pay and provide monthly or weekly payslips