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Contract for nanny - advice?(7 Posts)
Hi all, I've had great advice here up until now, looking for a little more! I am finalising our nanny's contract (draft to chat to her about) and I just wanted to check I am including everything I need to.
I used one from nannyjob website - it's quite formal but I have amended it quite a bit for our needs, there were a lot of clauses in there that were a bit odd!
We agreed a net hourly rate (I know, I know !). We are sharing her tax code with another family, so do you advise I put the gross monthly wage in there? I don't think we could be any worse off as we have 60% of her tax relief for 3 days work, and if her other job ended we may actually be better off so I was planning on putting in net rate.
I have also put in about a kitty/expenses, duties, misconduct, holidays, SSP, probation/notice and grievance.
Am i missing anything?
Oh, and insurance - does she or I need anything? She will drive her own car if need arises.
I think that you need employer's liability insurance and to inform your home insurer, and she needs insurance also, but don't know about the details.
Someone on a thread on here was saying that an 8 week notice period (except in case of dismissal for gross misconduct) is a good idea as 4 weeks not enough time to sort out alternative childcare should she resign.
Why are you doing net? Is like signing a blank cheque. Surely she can see what her gross wage should come to in net.
Hard to know without actually seeing the draft contract and knowing what the job spec is. So some things that typically need modification are:
Duties - remove babysitting from it. They are a nanny not a babysitter. If you want them to babysit that's fine to ask them on each occasion but don't have it in the contract.
Gross Salary (Section 2.1 of the Nannyjob version does state Gross)
Adjust payment method to what you are happy with. I would advise ditching every payment method except direct bank transfer.
Note: you should make sure the money is in your nannies bank account by the last working day of the month. Don't pay on that day... pay several days before hand so the payment has time to transfer/clear. Some banks will transfer instantly, others take a while.
Childcare Vouchers - are you using those at all? If so you don't need to put anything in the contract about it but you should make sure they clear in sufficient time. Suggest putting them in around the middle of the month, they can sometimes take ages to be paid. Payslips should ideally state how much money is paid via voucher and how much via bank transfer - you may need to write this onto a payslip if it's produced by a payroll company as the payroll company won't know about the vouchers.
2.4 The Nanny shall be reimbursed by the Employer for all reasonable expenses incurred by her in the performance of her duties under this contract, provided that the expenses are incurred with the approval of the Employer and provided the Nanny produces such evidence of expenditure as the Employer may reasonably require. Petrol costs will be reimbursed at the rate recommended by the Automobile Association if the Nanny uses her own car during performance of her duties.
I would change 2.4 so that it fits better with what you would actually be doing in reality. How are you deciding to operate a kitty - getting a receipt for every small thing can be tricky. You are trusting your nanny to care for your children, so trust them to operate a weekly kitty. If you get concerned about expenditure you could always ask them to keep a record for a bit to see what is costing more than is desirable. Also, do you want to approve each and every spend? Possibly not, I expect you want your nanny to be sensible.
Max travel reimbursement cost is shown on HMRC website - Approved Mileage Rates note that it changes after first 10,000 miles in the tax year.
As you nanny is using their own car... consider what is happening about child seats - whose responsibility to buy those? Car Insurance must also be suitable... Morton Michel provide a policy suitable for nannies. Other insurers may provide Class 1 Business, though may not specifically cover your children. Hard to know what is best to do car insurance wise as until a major claim is made you don't know how good the cover is. I don't think you can insist that your nanny has a certain type of policy, though you should make sure they discuss the situation with their insurer so their insurer knows they are being paid (at Approved Mileage Rate) to transport children.
Holiday Entitlement - make sure this is as clear as possible, especially about working/not working public/bank holidays.
6.3 Gross Misconduct - write out specifically what you consider gross misconduct to be. I advise using bullet points. Consider things the nanny might do whilst caring for your children... smoking for example.
Insurance for You... you need Employers Liability Insurance. This is usually part of your home contents policy (though Co-Op Insurance don't seem to include it). So check your policy, call your insurer if necessary.
>We are sharing her tax code with another family, so do you advise I put the gross monthly wage in there?
Yes as the tax code could change and probably will change come April 2012. You can't predict the future, something could happen which means the nanny has additional deductions from salary at source.
With a gross salary defined it does not matter what happens to that taxcode, your cost remains the same being Gross salary + Employers NI.
Notice period: long notice periods in an initial contract never works IME - you cannot force anyone to work out their notice, and if you try you may end up with even worse child care than none at all. If the boot is on the other foot and you want to get rid of her, you will end up paying twice as much pay in lieu.
Tax code: are you sure that HMRC will allow you to use a split tax code? Are you doing this through a payroll agency, in which case take their advice, but otherwise tread very carefully - unless she has a P45 with the tax code on it, or there is a letter addressed to you from HMRC telling you to use the tax code, you will have to use BR (assuming she is already working in the other job) which will cost you a fortune if paying net.
Payment: no need to transfer money early unless you have an unusual bank account (or she does, in which case any delays are down to her - examples are Citibank, Santander (except ex. Alliance and Leicester accounts), Northern Rock...). You can check the sending bank here and the receiving bank here.
Expenses: I think that paragraph 2.4 works quite well actually - because it says 'provided the Nanny produces such evidence of expenditure as the Employer may reasonably require' you can sort out the details of operation of a kitty without having to change the contract. Do use 'the HMRC approved mileage rate' (or what you have agreed to pay if less) though.
As you're removing clauses double check that everything required in a written statement is covered.
Don't agree a net wage. Work our what it is for this year using mra's fabulous calculator and put that in. You're then protected from future changes - as is she should she lose her 2 day job her wage will effectively increase at no extra cost to you.
OFSTED registration requirements and fees - who is responsible?
You are all fantastic, will read properly once I have my glasses on! Thanks so much
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