Nanny Contracts of Employment
A nanny contract of employment is an agreement between the employer and the nanny to define the employees’ employment conditions, rights, responsibilities and duties. These are known as the terms of employment. The contract is a legal document that gives the employer and the nanny rights and obligations.
The nanny and the employer must follow the terms of the contract. Surprisingly, the contract of employment does not need to be signed for it to be constituted as legally binding. Provided the nanny or housekeeper works according to the terms without protest it is assumed that the terms are accepted. However, at Little Ones Payroll we would always suggest that the contract of employment is signed as this will mitigate any arguments or disagreements which may arise during the employment term.
Since April 6th 2000, anyone legally classed as an employee has the right to a written document that summarises their role and terms of employment. This includes nannies, housekeepers and staff that work within your home. Once an appropriate candidate has been carefully selected and an offer of employment is extended and accepted, perhaps through our sister company Little Ones UK, a contract of employment should be agreed upon by both parties.
Putting in place an appropriate contract of employment for your nanny or member of staff is very important, it sets the foundations for the relationship economically and from a standards perspective. The terms of employment must be clear and both parties will be bound by these terms until the contract ends (through dismissal, giving notice, the terms changing or coming to an end).
Key Nanny Contract Timeline
A nanny can request written terms before their first day of employment.
Little Ones Payroll can provide you with an appropriate contact of employment suited to your particular nanny, au pair, housekeeper or another member of staff. Please contact a member of the Payroll team on 020 7183 6795 or email us at payroll@littleonelondon.co.uk to discuss the available employment contract options.
Preparing your nanny’s contract of employment
The Little Ones Payroll team is on hand to provide you with useful and relevant employment contract information. We have a range of template contracts of employment for nannies, housekeepers, au pairs and other household employees. If you are signed up to the Little Ones Payroll Service, these will be made available to you. These bespoke nanny contracts of employment will define the legal contract terms binding both parties.
What to include in a contract of employment
The Little Ones Payroll template contracts of employment have been drafted by an employment lawyer and are designed to cover all the key aspects and working terms for your nanny.
It is important to be cognizant of what should be included in a nanny contract of employment. Please note that Little Ones have included statutory guidelines for holidays, sick pay etc. Employers can choose to offer more than the statutory rate if they wish, but not less. Statutory is the minimum standard. For example, you cannot offer your employee less than 5.6 weeks annual leave per annum if they are categorised as an employee (rather than self-employed) and if they work 5 days per week. The Little Ones Payroll team would be delighted to answer any questions related to nanny statutory requirements relating to sick pay, holidays etc. The Little Ones Payroll team aims to take away the administrative burden of hiring an employee.
Where to start with the nanny contract of employment
Once the candidate has accepted the offer, it is customary to provide the contract of employment. If you have hired through our sister company Little Ones UK, the Consultants may have already offered you a template contract of employment to amend as per your requirements. If you have hired externally either privately or through another Agency, the Little Ones Payroll team will help you with this directly.
A nanny or housekeeper contract of employment will have specific facets that are customary for a nanny contract of employment. This includes “specific” terms such as the salary or working days and hours. The nanny contract of employment will also include statutory terms, that are part of employment law such as the right to receive the national minimum wage or the right to a certain minimum notice period
Key areas to consider in a nanny contract of employment
This list is not exhaustive but covers some of the key areas to think about when preparing your nanny’s contract of employment;
Employment start date
This should be included as this is when the employer and nanny agreement commences.
Economics – the Nanny’s Salary
Will you include the gross or the net nanny wage? Agreeing on a net wage with your nanny means that you will be responsible for paying the income tax and national insurance and any and all taxes due by the nanny. If the nanny has another job this will also affect the taxes due by the Employer. Speak to a member of the Little Ones Payroll team if you would like to understand this nanny wage topic a little better.
Notice Period
A nanny’s notice period is the amount of time the employee needs to continue working for the family in their nanny role before the contract of employment ends due to a resignation, dismissal or redundancy. Statutory guidelines for nanny notice periods advise the following;
1 month to 2 years with the Nanny family – One weeks’ notice period
2 years to 12 years – One weeks’ notice is required for every full year worked between two and twelve years.
12 years or more with a Nanny family – Twelve weeks’ notice should be observed.
Probationary Period
A nanny probationary period is a trial period for new nanny or housekeepers and is advisable for all new nanny or domestic staff placements within your home. The market standard for nanny probationary periods is usually between 3 and 6 months.
The notice period within the probationary period is around one week for employees and employers. Once the nanny’s probationary period ends this can be extended or deferred to the nanny’s notice period (4 to 6 weeks in the nanny market).
Holiday Entitlement
Nannies, housekeepers and other domestic staff are entitled to a minimum of 5.6 weeks paid leave per annum if they work at least 5 days a week. If an employee works less than 5 days a week, this will be prorated.
The Little Ones Payroll team would be delighted to help you work out with the Nanny’s holiday entitlement. Please contact a member of the Little Ones Payroll team on 0207 183 6795 or email us at payroll@littleoneslondon.co.uk so that we can assist you today. It is important you are providing your employee with at least their statutory entitlement.
Sick Pay
When an employee is sick, Nanny SSP (Statutory Sick Pay) is activated on the fourth day the nanny is off work, this includes non-working days. This is known as the ‘qualifying day’. The first three days are ‘waiting days’ and the Employer does not have to pay the nanny. Any days that the nanny is not paid would be included on the payslip by the Little Ones Payroll team as unpaid leave. Nanny SSP is paid at a weekly rate of £96.35 for up to 28 weeks.
Coronavirus SSP – If a nanny is off sick because they have COVID or are self-isolating due to NHS guidelines, SSP is payable from the first day off work.
Maternity Pay
Nannies and housekeepers are also eligible to receive Statutory maternity leave and pay.
Nanny Pensions
If a nanny is over the age of 22 and under state pension age and earns over £192 per week, £833 per month or £10,00 per annum, they are entitled to a pension and the Employer is obliged to auto-enrol the nanny into a workplace pension scheme. The Little Ones Payroll department is well versed in the hot topic of nanny pensions and can walk you through its applicability to your nanny.
Dismissal and Disciplinary procedures
It is important that the dismissal procedure is fair and reasonable and outlined clearly in the nanny’s contract of employment.
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.