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Amending contract for nanny share?(3 Posts)
Hoping someone might be able to advise
We've had a wonderful nanny for 2 months now and the plan has always been to do a share from sept when he starts preschool three days a week. Got a friend all lined up but we're unsure if the normal way of doing it.
We'd both like to pay her using child are vouchers and wondered if that means she'll need a seperate contract with both of us? Or will it suffice to amend her current contract?
Also wondering whether we should up her salary a little to reflect the new set up? We're keen to move her on to a fixed salary vs hourly rate as it's a headache to keep track of the extra/few half hour here or there. And we can then set up standing order etc. do other people do this?
Sorry for millions of questions. She's fab and I just want to make sure that we're doing what we should!
You should have a contract between you and your friend, so you both know the arrangements of the share, including things like how much notice to give for taking holiday, what happens if someone wants to end the agreement, how costs will be split, whose home will be used. Think about what happens if the other family want to go on holiday but you do not... what happens then? What happens if the nanny wants to take holiday and that suits you but does not suit the other family?
>We'd both like to pay her using child are vouchers and wondered if that means she'll need a seperate contract with both of us? Or will it suffice to amend her current contract?
Talk to a nanny payroll company, they should know what HMRC currently permit. As there is some shared time, I expect it is one employment. Therefore your existing contract will need to be completely replaced (continuity of employment is maintained), with a new one which states who the joint employers are, the new salary, all the usual employment law stuff about holiday entitlement. If your nanny has not yet taken their accrued holiday during their employment with you, then try to get them to take it, so you can start a new holiday year when the share starts.
>Also wondering whether we should up her salary a little to reflect the new set up?
Yes, a share is typically paying a bit more than working for a single family. However you don't have to do so, it depends on what you and nanny agree.
Agree a GROSS salary.
>We're keen to move her on to a fixed salary vs hourly rate as it's a headache to keep track of the extra/few half hour here or there.
Even with a fixed salary per year, you should still keep track of hours worked so you know if nanny is doing a lot more hours than contracted, or a lot less... so you can manage the time off in lieu. The difference will be that you are not paying for those the additional half hour, instead you are giving it as time off later on.
>And we can then set up standing order etc. do other people do this?
No, taxation makes changes to the take home pay (net pay) amount each month. It may be the same a few months running, it may change by a few pennies, or indeed a few pounds. You should make sure that payments made match with that shown on the payslip. Take account of payments made via Childcare vouchers - it can sometimes help to write the voucher payment amounts on the payslip (your payroll company probably won't do this, as they don't know what you are paying by bank transfer, what you are paying by vouchers, so write it on the bottom/back of the payslip produced by the payroll company).
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