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Redundancy Advice for Parents & Nannies

2019 March 4

Our recommended partners at www.PayrollForNannies.co.uk  provide payroll advice for parents, and have created this content.

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.

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