What do I need to know when hiring a nanny?
This is a good question. If you are looking into hiring a nanny for the first time, you may have lots of questions about your legal obligations, and rightly so, there are legal obligations that come with hiring a nanny. It is imperative that you’re aware of your responsibilities and that all necessary paperwork is in place ready for the nanny’s employment to commence. By doing this, you’re not only abiding by the law you are also showing your nanny that you are a conscientious employer, and it can be the first step to building a respectful working relationship.
I understand that this isn’t what you necessarily want to think about when it comes to finding a nanny. You want to focus on finding the perfect match for your family, the bright shiny unicorn that is going to make your lives easier and most of all be an additional loving and nurturing figure in your children’s lives.
However, nannies need employment security. They are dependent on the family that employs them so they can pay their bills on time and put food on the table. So, let us talk about the legal responsibilities of a nanny employer.
Tax Contributions
You will need to register with HMRC and set up a PAYE scheme. You are responsible for deducting and paying your nanny’s Income Tax. You are also responsible for deducting and paying your nanny’s National Insurance contributions should they be earning over the threshold. The good thing is there are several highly recommended dedicated nanny payroll companies that can take care of this for you.
Employment Contracts
You will need to provide your nanny with an employment contract. This will include salary, hours, holiday entitlement and a description of their duties. Your Nanny Friend has a template that we can provide.
Payslips
You will be responsible for providing your nanny with a payslip, either weekly or monthly, which shows their earnings and any deductions that have been made. This is also something that a nanny payroll company can take care of.
Liability Insurance
It is important that you purchase Employers Liability insurance. This will cover you should your nanny become ill or gets injured because of working for your family.
Paid Annual Leave
All employees are entitled to paid holiday. Whether they work full-time or part-time they are entitled to the equivalent of 5.6 weeks paid holiday a year. It is up to you as the employer whether you include bank holidays in this allowance, or if they are given on top. If you yourself have bank holidays off as extra holidays I would recommend giving them to your nanny too.
Pensions
You must enrol your nanny in a work-based pension if they are aged between 22 and State Pension age and earn over £10,000 a year. Again, most nanny payroll companies can take care of this.
Maternity Pay
If your nanny becomes pregnant whilst employed by you, they will be entitled to statutory maternity pay.
Sick Pay
Your nanny is entitled to Statutory Sick Pay (SSP) www.gov.uk/statutory_sick_pay
So, there you go! I am sure it can all seem a little daunting at first, but it’s fairly straight forward, especially as the nanny payroll companies are on hand to take care of most of the work.