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If a parent was to make nanny redundant the nanny would be entitled to redundancy pay after 2 years of complete service. The parent should have at least one meeting with the nanny to discuss redundancy and if there are any alternative roles – part-time nanny/housekeeper or going from live-in nanny to live-out. A 4-week trial period at the alternative role must be offered. A nanny can tell the parent that the job is not suitable within these 4-weeks, and this will not affect the nanny’s right to statutory redundancy.
If a nanny unreasonably turns down a suitable alternative to the current job, they may lose the right to statutory redundancy.
If redundancy is the only option, a parent must give the correct notice period and pay:
Age Redundancy payment due
18 to 21 Half a week’s salary or £254.00 whichever is lower
22 to 40 One week’s salary or £508.00 whichever is lower
41 and above One and half week’s salary or £762.00 whichever is lower
Length of employment Length of notice
Between 1 month and 2 years at least 1 week
Between 2 and 12 years 1 weeks’ notice for each year
Over 12 years 12 weeks’ notice
A parent can, of course, give a nanny more notice than above, but not any less. Parents have a duty to pay a nanny through their notice period or payment in lieu of notice.
Once a nanny had been notified of being made redundant, the parent must let the nanny have a reasonable amount of time off to look for another job or arrange training to get another job.
Redundancy payments are not taxable if the payment is under £30,000.