nanny contract – Page 3

Points to consider before signing a contract with your employee

Once you have decided to employ a nanny, and give them an offer letter, it is advisable to

include the key terms and conditions of the role, such as:

Job title,

Job description,

Days/hours of work,

Holiday entitlement,

Notice period,

Statutory payments,

Disciplinary and Grievance procedures

It is essential that all the terms and conditions of the employment are addressed in the form

of a contract of employment and this must be given to nanny to sign within 2 months of them

starting the position.

Once nanny accepts your offer of employment, you have entered into a legal arrangement,

(subject to satisfactory references) therefore the sooner a contract is drawn up between the

employer and the nanny, the better.

Qualifying Criteria for the Work Place Pension

Whether or not your nanny qualifies for the work place pension depends principally on your nanny’s age and their earnings. The new law requires every employer to automatically enrol workers into a work place pension scheme if they are aged between 22 and the State Pension Age, and earn over £10,000.00 per annum.

If nanny is automatically enrolled in a pension, they can opt-out up to 30 days after the initial set up has been completed and get a refund on the amounts which have been deducted from their salary. They must complete and return an opt-out form and inform their pension provider.

If your nanny does not qualify to be automatically enrolled they still have the right to join a work place pension. This is known as a Non-eligible job holder.

Non-eligible job holder is an employee who doesn’t have to be automatically enrolled into a work place pension, but can ask to be joined into a pension scheme if so wish. If they do, both the employer and the nanny will have to pay into the pension pot each month.

The minimum auto enrolment contribution rates are currently 8% of qualifying earnings. This is split between 3% which must be paid by the employer and 5% which must be paid by the employee.

Ofsted Registration Process

Nannies at present are not required by law to hold any childcare qualifications.

However if they wish to become part of the Voluntary Ofsted Childcare Register (OCR) they have the same requirements as a childminder, the only difference being is that they are caring for the children in their own home.

To register, a nanny needs to complete online application via the Government Gateway website.

https://online.ofsted.gov.uk/OnlineOfsted

It will cost around £103 and needs renewing every 3 years.

As a nanny you will also need a Paediatric First Aid certificate, The Common Cores Skills and Knowledge in Childcare, Enhanced DBS Check and Public Liability Insurance.

SMP Statutory Maternity Pay

Holiday pay

Employees accrue holiday entitlement as normal throughout the maternity leave and this includes any bank holidays that may fall during that leave and this is a cost to the employer.

Any such holiday accrued is normally either taken or paid for at the end of the leave.

Antenatal classes

Employees are entitled to paid time off to attend these and except from the first appointment you can request proof of this.

If possible they should arrange these appointments at times she is not working although if full time employee this may not be possible.

Keeping in Touch Days

Employees are entitled up to 10 days classed as keeping in touch and any days worked are paid in addition to any paid SMP and is at a cost to the employer.

These days can be used for work and irrespective of the hours worked each day it is classed as a full day for Keeping in Touch purposes.

Pension

If employee contributing to pension when they go maternity leave their pension contributions will be based on the SMP paid, but the employers contributions need to remain at the same level they were on before the maternity leave started.

For example if the employers contribution was £15.00 then irrespective of the SMP paid the employers contribution would remain at the £15.00 throughout the maternity leave.

SSP Statutory Sick Pay

All nannies are entitled to Statutory Sick Pay (SSP), as long as they earn over the lower earnings limit of £118 a week and give you the correct notice.

SSP is paid to nannies on the 4^th consecutive working day off and the first 3 working days are classed as waiting days and any salary for these 3 days are paid at employers discretion, unless they have something specific in the contract regarding paid sickness.

If a nanny has more than one job then she is entitled to SSP from each employer should she qualify.

Nanny must provide a Doctor’s fit note if she is off sick for more than 7 days in a row, for first 7 days they can self-certify.

How much is SSP

For this tax year, 2019/20 SSP it is £94.25 per week. Nanny can get SSP up to 28 weeks.

As of the start of the 2014/15 tax year the Government abolished any compensation on SSP for small employers and this is now a cost to the employer.

Nannies do not qualify

If they have already had 28 weeks of SSP paid.

Have already taken 3 or more years ‘linked periods of sickness – where 4 or more days of sickness happen within 8 weeks of each other.

Receiving other statutory payments (SMP for example).

Nanny may be able to apply for Employment and Support Allowance (ESA) if she is not entitled to SSP with you or has had 28 weeks of SSP. In order to apply for this, you must give nanny a SSP1 form.

Career Breaks

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

There are no laws that deal specifically with taking a career break – it is only an agreement between the employer and the employee.

Employers don’t have to offer career breaks. If they do, the policy must be clearly laid out (eg in a staff handbook) and should cover things like:

eligibility and notice periods
how to apply and how long is allowed
if the employment contract’s terms and conditions continue – eg qualifying for pay increases

Employees can make arrangements to return to work after a career break, but these agreements are not legally binding, and it could mean ending the existing contract of employment

Jury Service

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

All employees must be allowed to take time off for jury service.

Employers can choose to pay staff for time taken off, but they do not have to.

The Court will pay the employee for the time spent on Jury service and employee will be given a statement of earnings notification which employee then gets employer to complete and then give to Court to claim for loss of earnings.

If employer chooses to pay employee whilst on Jury service, then it would be expected that the employee then repays the employer any payments from the Court that they receive for loss of earnings.

Alternatively, an employer can if they wish, but not obliged to do so, top up the employees earnings they receive from the Court.

Nannies and Mobile Phones

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

A lot of parents are becoming increasingly concerned regarding nannies and their use of mobile devices when they should be concentrating on their job, which of course is looking after the children in their care.

People generally, not just nannies, seem to spend a lot of their time on mobile devices whether texting friends or checking their social media apps.

Some parents are now putting a clause in the nanny contract limiting the amount of use a mobile phone or even supplying nanny with a work mobile phone and then nanny not permitted to use their personal mobile.

We would perhaps suggest erring on the side of caution as nanny may feel that if implemented you are not trusting them entirely.

Nanny-State Pension Age

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

What happens when nanny reaches state pension age

If nanny reaches state pension age, she will then not have to pay employees NI, this then increases the amount of money she will then take home in her pocket if she is on a gross wage.

If nanny is on a net wage, then the employer will then get the benefit of employee then not paying NI and will then see a reduction in the overall total cost each pay period.

Nanny and Sleepovers

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

If you are thinking of going away for the weekend, and have asked nanny to look after the children, should you pay her national minimum wage while she sleeps?

The court of appeal in July 2018 has stated you need to be awake for the purposes of working to qualify for national minimum wage.

This Judgement is likely to be appealed but as it stands the below will apply.

Once the nanny has been woken up, then national minimum applies.

If nanny is going to do sleep ins, it would be advised to agree a flat rate, and then in addition to that a rate for when nanny is awake.

https://www.moorepay.co.uk/blog/court-of-appeal-reverses-pay-decision-in-sleep-in-workers-saga/