Employer’s Responsibilities

What are my employer’s responsibilities when hiring a Nanny or any household staff?

From the moment you have decided to employ a nanny or any household staff, specific responsibilities come with this action. Unfortunately, most families don’t have a clear idea of what these responsibilities entail; you will find below a resume of each of the duties you will take on when you hire a nanny or household staff. It’s important to highlight that they apply not only to nanny’s employment but also to hire all forms of domestic staff.

In the following lines, you will find the legal responsibilities that you have as the employer of domestic staff:

1. Employment Contract

You might be wondering why you should have a contract with your nanny or household staff. Unfortunately, many families leave this responsibility aside, believing that because this person is coming to their houses, their job is more informal than someone who commutes to their workplace in an office, a nursery, or cleaning a shop, for example. This is one of the most common mistakes.

Nothing is better than having a complete and precise description of the job that the nanny, nanny-housekeeper or housekeeper will be doing every day. Employer & employee need to agree on the description before starting the job. In addition, you will need to discuss how many days and hours the nanny will come to your house, what the responsibilities of the nanny are, if they will be doing extra hours and how they will be paid, if the job is temporary or permanent, if the nanny needs to drive, and many other specifications.

It’s here that the contract comes into play. First, we need to be clear that this is a legal requirement that each family and nanny should have between them. This contract will be easier to make if you have already talked with your nanny about the description of the job. You will need to put in writing when the employment will start and finish, the responsibilities of the employee, the work hours/days, holidays, sick days, reasons why the job may end, and how many weeks of notice the nanny needs to give if they decide to resign.

We advise families and nannies to create a written contract of employment where both parties agree on the terms. The most important action of this is the signature, where this is the proof that both parties are happy with everything in the contract. This contract should be signed within two months of the starting day of the employment.

Little Ones Payroll provides our clients access to 7 sample employment contracts tailored to various Nanny, Housekeeper, Au pair and other domestic roles. Our team has made editing the contract simple and easy by highlighting the areas you need to complete with the specific employment details. If you’re ever stuck, our friendly payroll team will be happy to help you out with any queries that you may have. Would you like to have access to our contract templates? Click here

For those who have never written a contract before, the idea of creating a legal document can be daunting. What if I forget essential points? How many holidays should they have? Do they get sick pay? Having all of these items covered is crucial for any contact.

2. Pay PAYE income tax and NI

You will need to deduct tax and National Insurance as an employer, but you may also deduct student loan repayments and pension contributions. Every employee (it doesn’t matter if they are working in a temporary capacity, permanent capacity, full-time or part-time capacity) needs to have PAYE and NI deducted from their Gross salary before receiving their compensation (Net salary), since every person living and working in the United Kingdom is obligated to make financial contributions through Pay as You Earn (PAYE) on any earnings above their allowance.

3. Employment Payslip

If you are the employer, you are obliged to give your nanny, nanny-housekeeper or housekeeper a payslip; this is an employee’s right according to the Government official website- Gov.uk. What is a payslip? It’s a note that details the amount the employee has been paid for a specific period and lists any deductions, like PAYE, NI, student loans, and pension contributions. The payslip can be sent on paper by post or given directly to the employee or via email in digital format.

When Do I not need to provide a payslip? For example, when the employee is in the police service, is a merchant seaman, works in share fishing, or works as a contractor or freelancer. Since Nannies don’t fit into any of these categories, you are obliged to give a payslip to them.

4. Pension Auto-enrolment

Pension contributions may include the employer’s pension scheme, as any voluntary contributions or those contributions that are passed to a personal pension provider. This deduction is taken out of your nanny’s pay at ‘source’ and doesn’t have tax on top of it. Little Ones always recommends that the families ask their nannies if they are interested in any pension scheme or that the nanny should ask their employer to deduct this from their payment.

Due to an update of the Pensions Act, it is now a legal requirement for every UK employer to provide a workplace pension for their employees, automatically enrol their workers into that qualifying pension scheme, and contribute to that pension. Whilst you may not consider yourself an ‘employer’, this Act includes those that hire nannies for their families. Little Ones Payroll is here to support you through this update and ensure that the process of enrolling your nanny is straightforward. Auto-enrolment into a pension scheme is a compulsory requirement if:

  • Your nanny is aged between 22 and State Pension Age
  • Your nanny earns more than the minimum earnings threshold
  • Your nanny is entitled to a pension
  • Your nanny is not already enrolled in a workplace pension scheme.

If your nanny is under the age of 22 or earns less than £10,000 per year, contribution to a pension is not compulsory. However, your nanny has the right to request that you set up and contribute to a pension and, if they do, you are required to arrange it.

5. Holidays, Statutory Sick Pay and Maternity Leave

The employer is legally obliged to pay for Holidays, sick days and maternity leave. Your nanny qualifies for Statutory Sick Pay (SSP) if they have been off work sick for four or more days in a row (including non-working days). The employee has the right to enjoy their statutory holiday.

6. Nanny Guide

We advise families and nannies to have an honest conversation about both parties’ expectations of the job. The best moment to have this conversation is during the interview or at least a few days before starting the career. Talk about the home dynamic, how things work, explain where everything is in the house, how to act, and who to contact in case of an emergency. These are some of the few things that the conversation should go through.

Both the employer and employee should feel comfortable going through the list of each responsibility to avoid any misunderstanding in the future about topics you were supposed to discuss at the beginning of the employment.

For example, putting in the contact when the nanny can take holidays, for how many days, if the Nanny is allowed to go out of the house without the consent of the parents, should she ask permission every time that she goes out with the children, like going to the park or next door.

As with any other employment, you will go through ups and downs with your nanny during the employment relationship. There will be good days and bad days, and moments where both of you won’t agree about a situation, but the best is always to talk about it and find the best way to understand each other. It’s vital that every six months or every year, you go through a review process with your nanny to talk about her performance and the children’s development; having a chat about it will help to improve anything that needs to be improved.

Nanny Payroll is free for our clients with new recruits

If you have recently hired or are considering hiring a nanny, housekeeper or au pair through Little Ones, your monthly payroll service is completely free for 6 months from your new employee’s start date. Please note that our weekly payroll service has a cost of £76 per quarter. Please call Little Ones Nanny Payroll team for more information.

Little Ones is an internationally established London nanny agency with two offices in Fitzrovia and Kings Cross.

Our years of experience, dedication and integrity with Payroll services have developed an extensive and constantly expanding network of satisfied clients whose needs and requirements we understand and accommodate to the highest standard.

Little Ones’ team of professional and committed consultants understand the importance of making the best possible match between families and nannies. We know that every family has individual needs and requirements, just as every nanny has unique qualities to offer, and we won’t stop until we are confident that the perfect match has been made.

If you are just starting the process, or are still finding the right Nanny, Housekeeper or Au Pair for your family and would like to know more about our Payroll service, please call Little Ones Nanny Payroll team to talk with our expert consultants on 020 7183 6795.

How Do I Pay Taxes for my Nanny?

Nannies along with other employed professionals, should pay tax from the money they earn. This is done through the Pay As You Earn (PAYE) scheme, which will be operated by the employer or will be automatically generated through an agency’s payroll system. Little Ones will set up a PAYE scheme for our clients and help navigate the employer duties.  We will take care of all tax-related responsibilities for an easier salary transaction.

Little Ones will calculate the tax liabilities due on behalf of the nanny every month or quarter depending on the client’s preference.  This will include a summary of income tax, employee and employer’s national insurance contributions due.  Little Ones Payroll will provide clients with HMRC’s bank details and detail the process to pay them directly. We aim to  make this transaction simple and help clients to avoid any late payments which may incur interest charges.

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