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How to Create a Comprehensive Nanny Contract - Essential Must-Haves and Pro Tips

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Are you a parent looking for a reliable nanny? Perhaps you found the perfect candidate but are unsure how to 'make things official' so that your nanny can now become your legal employee? Establishing a structured agreement between families and nannies is crucial for maintaining a harmonious and productive relationship. But it's also a legal requirement.


A nanny contract serves as a foundational document outlining expectations, responsibilities, and terms of engagement. It creates a clear framework for both parties to operate within - it safeguards the interests of families and nannies but also helps you create mutual trust and respect from the start of your professional relationship.


Why is it important to have a contract in place?


In the UK (as in most countries), it's a legal requirement for all employees (including nannies) to be provided with a contract of employment or, as a minimum, a statement of employment terms. This document should be given to the nanny before their first day of work to allow her sufficient time to review it, address any questions or concerns, or ask for any amendments or additions. If the nanny's start date is approaching or she's already started work without receiving her contract, she has the right to request it from you.


The contract ensures compliance with employment laws. It needs to clearly outline the terms and conditions of employment for both the family employer and the nanny employee. Failure to provide a written contract can result in legal consequences and penalties. This means a formal agreement is essential to protect the rights of both parties.


Every provision within the employment contract must comply with employment law regulations. This includes (but isn't limited to) ensuring the nanny receives the appropriate holiday entitlement, as per her legal rights. It’s your responsibility as the employer to use a contract that is fit for purpose.


Unfortunately, over the years, we've seen a lot of placements falling through in the later stages of the hiring process because the contract hadn't been drawn up properly. We see families go through the entire selection and hiring process (complete with multiple interviews and trials) and then lose the chance to hire their chosen nanny after making an offer because the contract wasn't set up correctly or didn't take into account the nanny's requests.


This is why we work with our clients until the end of the hiring process (and beyond) to make sure both parties are entirely happy with the contract and sign it.


Nanny shaking hands after signing agreement

How will you create your nanny contract?


When you work with us to find a suitable nanny for your family, we recommend you get in touch with a payroll agency or expert, such as Nanny Tax. As part of their payroll service, Nanny Tax clients receive a bespoke nanny contract plus a handbook outlining each of the terms. As one of their clients, you have unlimited access to a team of HR experts who will answer all HR-related queries, such as sick leave, maternity leave, and nanny share arrangements.


When you work with us, you can also choose to opt for our bespoke nanny contract and work with our dedicated HR and EDI consultant, who will offer a more personalised service. As a member of ANA (The Association of Nanny Agencies), Homebodies can provide ongoing HR support and templates for all HR-related letters. These not only include contracts but also redundancy, disciplinary, etc.


While sourcing a professional and bespoke nanny contract is our recommendation to our clients, you don't have to use one of the templates we can provide you. You may have a template that you've used before or that a solicitor put together for you. Either way, when you hire Homebodies as your nanny agency, we'll be by your side every step of the way to make sure your contract is drawn up correctly and your offer goes to fruition.


What should you include in your nanny contract?


When drafting or reviewing a nanny contract, some of the essential details you should include are:


  • Start date. Specify the commencement date of employment to establish a clear timeline for both parties.

  • Hours of work. Outline the expected working hours, including start and end times, as well as any provisions for overtime or flexible hours.

  • Starting salary. Agree on a gross salary and specify this amount in the contract to avoid any confusion.

  • Overtime rate. Establish a fair overtime rate for babysitting or any additional working hours required beyond the agreed-upon schedule.

  • Holiday entitlement and paid leave. Define the nanny's entitlement to paid holidays, sick leave, and any other forms of paid time off, such as compassionate leave.

  • Probationary period. Set a probationary period during which performance will be assessed.

  • Notice period. We recommend setting a notice period of at least one month to six weeks. This gives both you and the nanny adequate time to adjust to any necessary changes in the employment arrangement.

  • Training requirements. Detail any training obligations for the nanny, including any training not financially covered by you (the employer).


Key additional considerations for your nanny agreement


Your nanny may also request for additional clauses to be added to the contract. If these points are relevant to your family but not covered in the original draft of the contract, perhaps you should consider adding them.


  • Traveling and overnight stays. If your nanny will be accompanying you on trips or staying overnight, define the terms and conditions for such arrangements, including appropriate compensation for their time and expenses. Many nannies will also expect to be paid a daily rate for being away from home. If you’re happy to offer this, you must include it in the contract, together with the overtime rate for any hours worked extra (e.g. if travelling on a weekend or evening when the nanny isn’t usually working).

  • Use of mobile phone. Outline guidelines for mobile phone use during work hours to maintain a professional environment

  • Meals when at work. Specify the arrangements for meals during working hours to avoid any confusion. Many families will provide food for their nanny while on duty.

  • Additional benefits. Specify any additional benefits provided by the employer, such as health insurance, pension contributions, or transportation allowances. If you require your nanny to drive, determine the terms for the use of a car and provide appropriate petrol allowances or, if appropriate, a designated car for the nanny to use.

  • Petty cash or bank card. Discuss whether your nanny will have access to petty cash or a bank card to cover expenses related to your child's activities and establish clear guidelines on their usage.

  • Optional terms. Consider including terms related to privacy and confidentiality, as well as clauses regarding relocation if relevant to the nanny's position.


Parent, nanny and baby's hand piled on top of one another

Further important contract details for nannies


While not all nanny contracts may include these points, there are further items you may want to consider (if applicable). Here are some examples.


  • Health and safety procedures. Are there any expectations regarding safety protocols, or emergency procedures? What's the nanny's responsibility in terms of maintaining a safe environment for the children in her care?

  • Communication guidelines. Establish clear guidelines for communication between the nanny and the family. What are the preferred methods of communication, the frequency of updates, and the expectations for reporting any incidents or concerns?

  • Discipline and behavior management. Define expectations for disciplining children, handling challenging behavior, and establishing appropriate boundaries that align with your values and parenting style.

  • Confidentiality and privacy. If required, include clauses that emphasise the importance of maintaining confidentiality about the family's personal information, home life, and any sensitive matters discussed within the household.

  • Performance evaluation. Discuss how performance will be evaluated, feedback mechanisms, and opportunities for professional development. Always ensure the lines of communication between you and the nanny are open and that there's potential for growth within the role.

  • Termination procedures. Clearly outline the steps and conditions for terminating the employment relationship, including notice periods, reasons for termination, and any severance arrangements.

  • Sick days. When a nanny gets sick, the employer is responsible for administering Statutory Sick Pay (SSP). This is paid in replacement of their usual salary and cannot be claimed back from the government. A nanny is entitled to receive SSP if they’ve been ill for at least 4 consecutive days. However, many nannies expect to receive up to 6 paid sick days per year and often want this to be included in their contract as they can get unwell by catching something from their charges.


Pro tips for crafting a comprehensive nanny contract


To make sure your nanny contract is not only legal but also comprehensive, we recommend the following.


  • Seek legal guidance. Consider consulting with a legal professional specialising in employment contracts to ensure your agreement protects both parties. If in doubt, we advise you to use Nanny Tax or our dedicated agency HR consultant.

  • Ensure clarity and specificity. Always use clear and specific language in your contract to avoid ambiguity and misinterpretation of terms. Define responsibilities, expectations, and rights clearly.

  • Include dispute resolution mechanisms. Incorporate provisions for resolving conflicts or disputes amicably. No one wants legal battles, but it's always best to be prepared. To avoid this, here are some tips to maintain a positive relationship with your nanny.

  • Regular contract reviews. Schedule periodic reviews of the nanny contract to assess its effectiveness. It's a great opportunity to address evolving needs and make necessary amendments. If you work with us, we'll be by your side throughout this process.

  • Listen to your nanny. If your nanny isn't happy with the contract and refuses to sign it because she feels some points haven't been covered, do consider her requests and see if you can incorporate them into the contract.

  • Open communication. Be open to addressing any concerns, providing feedback, and ensuring both parties understand their expectations.


Would you like our help with your nanny contract?


Creating a comprehensive nanny contract is essential for building a successful partnership between you and your nanny. A well-drafted contract sets the stage for a harmonious relationship with clear expectations and mutual trust. If you're looking for support with drafting or signing a nanny contract or you'd like our help looking for the perfect nanny for your family, contact us now for an informal chat.

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