Nanny Redundancy
Nannies, housekeepers and other domestic staff members are all eligible employees who are legally entitled to redundancy pay, provided they meet the requirements. Little Ones Payroll is well versed in the subject of nanny redundancy and will be able to talk through this facet of employing a long-standing member of staff with you.
In order to qualify for nanny redundancy, the member of staff will need to have worked for the employer for at least two years and have a contract of employment. Please check with your Little Ones Payroll consultant or administrator if you are unsure if this will apply to your nanny.
Nanny redundancy can be a conflictive subject to deal with. Luckily, the Little Ones Payroll team is on hand to help you navigate the legal parameters of this multifaceted subject. Our Payroll team is expert at dealing with all areas of nanny payroll. We would be delighted to take you through the basics of nanny redundancy and how it may or may not be applicable to your employee. Please do not hesitate to contact a member of the Little Ones Payroll team on 0207 183 6795 or email us at payroll@littleones.co.uk.
What is Nanny Redundancy?
The word redundancy in the workplace is defined to mean that the needs of the business for employees to carry out work of a particular kind (i.e. nannying or housekeeping) ceases or diminishes; OR. the needs of the business for nannies to carry out work of a particular kind in the place where the employee was employed cease or diminish.
Redundancy is a form of dismissal in which the job that the nanny carries out is no longer required or the job has been made obsolete. Essentially, when relating this to nannies, this typically means that the employer no longer needs childcare or perhaps the job has changed due to changing child care needs but now the nanny’s job is very different from the job they were initially hired for.
Nannies are indeed eligible for redundancy if they have worked for an employer for more than two years. If they have been working in your current job for more than two years and the role is no longer required, this still counts as redundancy.
If a nanny or member of staff is dismissed because of their performance, conduct or another reason this does not constitute redundancy. Furthermore, if an employer offers the job back or offers suitable alternative work which is refused without good reason, this also does not count as redundancy. There are various nuances to redundancy eligibility that should be more formally reviewed with ACAS or Gov.uk if there is doubt over a redundant position. Please speak to the Little One Payroll team for guidance on how to proceed.
Nanny Redundancy Eligibility
Nannies or housekeepers are eligible for redundancy pay if they first have an employment contract and secondly if they have worked for your employer for two years or more before being made redundant. The employment contract does not have to be written. A written contract clarifies what has been written verbally. However, It is worth mentioning that verbal agreements are more difficult to enforce and Little Ones would always advise that it is good practice to have an agreement in place.
Nanny Redundancy Remuneration
Redundancy pay is a factor of your age and how long you have worked for the employer.
Please refer to the below statutory redundancy rates. These can also be cross-referenced on Gov.uk Redundancy pay. Please note that the length of service is capped at 20 years.
- 5 weeks salary for each full year of employment after their 41st birthday
- One week’s salary for each full year of employment after their 22nd birthday
- Half a week’s salary for each full year of employment up to their 22nd birthday
As stated by HMRC your nanny’s weekly pay is the average they earned per week over the 12 weeks before the day they got their redundancy notice.
As per the Gov.uk website, if you were made redundant on or after 6 April 2021, weekly pay is capped at £544. The maximum amount of statutory redundancy pay is £16.320.
Tax free Allowance for Nanny Redundancy
Nannies who have been made redundant only pay tax on payments over £30,000. Deductions for tax and National Insurance contributions will be taken from any salary or holiday pay owed to the employee (if set up on a gross basis).
Calculating Nanny Redundancy
Please use the below redundancy calculator tool for working out your nanny’s redundancy. This is a tool that uses age, weekly salary and number of years in the particular job to work out the redundancy.
Why Work with Little Ones Payroll?
All the trouble of doing these mandatory requirements is easy if you put them all in the hands of qualified individuals. Little Ones Payroll is just the right company for that, as the leader of Nanny Payroll Services with more than 15 years of experience in the market.
Little Ones Payroll isn’t just a Payroll established; together with Little Ones Agency, they are a growing childcare and housekeeper provider. This company is led by a team of experts who assist clients in the most extensive way.
Initially, suppose the family registers as a client looking to hire a nanny or housekeeper through us. In that case, they will get a complimentary six months of free payroll services from the date your nanny or housekeeper’s starts. This means that the company will be in charge of generating payslips and the complete payroll service. This includes:
- Registering you as an employer
- Setting up a PAYE scheme
- Generating weekly or monthly payslips
- Tracking your nanny’s Insurance contribution and Income Tax and providing instructions on how to pay these
- Assisting with filing your annual tax return
- Handling the complete payroll record
- Access to our HR services
- Support for any work-related queries, including maternity and sickness
With the Little Ones Payroll excellence and commitment, the team pride itself on delicately aligning a premium, luxury service to those who put their trust in them. Please call the Little Ones Nanny Payroll team for more information on 020 7183 6795.