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Hiring a Nanny

Your legal obligations

Hiring a Nanny

Employer's Legal Liabilities when Employing a Nanny


Understanding your Statutory Obligations

As a nanny agency committed to providing exceptional household staff, we believe it is essential for parents and employers to be aware of their legal responsibilities when hiring a nanny. Employing a nanny, whether on a part time, full time, permanent or temporary basis, comes with certain legal liabilities that must be adhered to in order to ensure a safe and fair working environment.

This page aims to outline the employer's statutory obligations when hiring a nanny, ensuring both parties can navigate their relationship with confidence and in compliance with the law.


Employment Contract

The first and most critical step when hiring a nanny is to establish a clear and legally-binding employment contract. This document should outline the terms and conditions of employment, including working hours, salary, job responsibilities, and any other relevant agreements. Having a written contract helps protect both the employer and the nanny by providing a framework for the employment relationship. Absolute Childcare will assist you with a bespoke contract of employment.


Minimum Wage and Working Hours

As an employer, it is crucial to comply with the national or local minimum wage laws and working hour regulations. Ensure that your nanny's salary meets or exceeds the minimum wage set by the relevant authorities, and that their working hours adhere to the legal limits to avoid any potential legal issues.

Tax and National Insurance Contributions: Employers are responsible for deducting and remitting income tax and national insurance contributions from their nanny's salary in accordance with the prevailing tax laws. You must also provide the nanny with a P60 at the end of each tax year, summarising their earnings and deductions.


Weekly or Monthly Payslips

As part of your legal obligations, it is essential to provide your nanny with regular payslips. These payslips should include detailed information about their gross pay, any deductions made (such as taxes and national insurance), and their net pay. Providing payslips helps ensure transparency and keeps your nanny informed about their earnings and deductions.


Holiday Entitlement and Calculation

Nannies, like any other employees, are entitled to a certain amount of paid holiday each year. In the UK, the statutory holiday entitlement for full-time employees is 28 days, including public holidays. This entitlement can be pro-rated for part-time nannies based on the number of days or hours they work per week.

The calculation for holiday entitlement is usually as follows:

  • Full-time Nannies: 28 days (pro-rated for part-time)

  • Part-Time Nannies: (Number of days worked per week) x 5.6

Government Resource: For more detailed information about holiday entitlement and calculation, you can visit the UK Government's official website on holidays and time off.


Pension Auto-Enrolment

If your nanny is eligible, you must enrol them into a workplace pension scheme and make contributions towards their pension as required by the law. Be sure to keep the nanny informed about their pension rights and contributions. Health and Safety: As an employer, you have a duty to ensure a safe working environment for your nanny. This includes identifying and minimizing potential risks, providing necessary training, and adhering to health and safety regulations to prevent accidents and injuries.


Public Liability Insurance

It is advisable for employers hiring a nanny to consider public liability insurance. This insurance provides coverage in the event of a claim for injury or property damage caused by the nanny while carrying out their duties. Having public liability insurance can provide peace of mind and financial protection for both the employer and the nanny.


Nanny Agency Assistance

At Absolute Childcare, we understand that navigating legal obligations can be complex. That's why we offer assistance in creating a comprehensive employment contract. If required, we can also assist with payroll for your nanny.


Conclusion

Employing a nanny comes with legal responsibilities and obligations that should not be overlooked. At Absolute Childcare, we encourage all parents and employers to familiarise themselves with the statutory requirements. By understanding and complying with the legal liabilities, employers can create a positive and rewarding employment relationship with their nanny while safeguarding their legal interests.


Disclaimer

Please note that the information provided in this content page is intended for general guidance and should not be considered legal advice. For specific legal advice related to employing a nanny, we recommend consulting with a qualified legal professional.

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