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Original poster

Employing a nanny - through her own agency

30 replies

Dysgu · 09/09/2013 21:37

We have (partially) sorted a nanny to look after our 3DC when I return to work in January 2014. We are very happy with her - she was our first CM when DD1 (now 7yo) was a baby; DD2 started with her and then, due to a change in circumstances, she gave up CMing and went to work at local pre-school where she was DD2's keyworker. She also found us a great replacement CM and helped us cover until new CM had space for both DDs.

We now have 6mo DS and, logisitically, it will be easier to have someone come to our home and care for our DC from here. DDs will be able to stay after school for clubs, DS will have 1-to-1 care in the day, DDs will be able to have friends over/go to friends' homes; nanny will do 'nursery duties' and get tea started; she is very sociable and is great at organising activities; she will cover DDs if they are ill on a school day... the only 'downside' is the cost but we figure we are getting a lot more for the money than with our previous, wonderful CM (who has downsized due to her own circumstances so wasn't looking for out DC to return to her anyway).

We have a secure verbal agreement with the Nanny with an agreement to get together soon to put everything in writing (once DD2 is in school full-time - which happens next week).

Anyway, the Nanny runs her own Nannying agency. I originally asked her for advice about the job and she then got in touch saying she actually fancied doing it herself. She will be self-employed through her own agency and we will be covered under her own insurance, she will sort her own tax and she is registered with OfSTED so we will partially pay her in vouchers. She is a qualified nurse (was still working on the Bank when CMing in the early days) and has up-to-date first aid.

We are setting the hours but are happy

  • that she sends an alternative nanny to cover any sick days
  • that she sends an alternative nanny to cover any (extra) holidays

The position is term-time only. I have worked out the annual hours x hourly rate and then divided the total by 12 to work out equal monthly payments. This is one of the things I first asked her advice about and is one of the aspects she particularly likes (apart from the fact that we are lovely people with lovely children Grin )

I have just been thinking though; what would happen if she was sick and could not provide cover for our DC. Obviously DP (or I) would have to take the day off work and look after our own DC; this is not a problem. But would we pay her? How much?

Also, if she is self-employed through her own agency, would we have to pay her for the 5.6 weeks holidays? She would actually only work 39 weeks a year and would have 13 weeks off, but I have worked it that she is only PAID for 39 weeks' work. Should we be providing paid holidays even is she is self-employed?

If she wanted to book/take any extra days off, again we would be fine to cover her as DP can use his holidays. Again, our first choice would be that she would provide an alternative nanny, but if she couldn't..? I guess she could opt to work any days in lieu but that would be working in the school holidays which is when I don't work so I wouldn't really need her to (but could probably find something to do with a child-free day in the holidays!)

Any thoughts?

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Cindy34 · 09/09/2013 22:38

Is the agency a limited company? Nursery agencies I can think of are all ltd companies, wonder if that makes any difference to if someone was running it as a sole trader.

Cindy34 · 09/09/2013 22:36

No holiday or sick pay.
I would expect the hourly rate to be considerably higher than that you would be offering a nanny you employed, is the hourly rate high compared to usual nanny salaries in your area?
Will the agency invoice you for work done by whichever of their employees they provide? That is how nursery temping works, the nursery pays the agency and the agency employs the worker.

Quite unusual in my view for a nanny agency to employ staff other than office staff. Most agencies are introduction agencies, rather than an employment business. Some though do supply nursery temp staff, so in theory could supply nanny temp staff.

Lonecatwithkitten · 09/09/2013 22:22

Is the agency going to invoice you for providing a Nanny?
If this is the case you have a contract from a business to provide you with a service. The business invoices you when it can provide the service if it can't provide the service it doesn't invoice.
In this situation if she owns the business as a sole trader she can be self employed as she will have other clients through the agency and you have agreed that she can substitute someone else.
In this case there would b no holiday pay and no sick pay.

Original poster
Dysgu · 09/09/2013 22:03

Hmm Outraged that is interesting. She employs lots of nannies, babysitters, mothers' helps etc through her agency. I figured it was the same as going through her agency to employ a nanny, just that she was the one taking the job.

Many of her contracts are short-term, occasional or for weddings, holiday makers etc. But she also places people for longer term contracts; the employers pay the agency and then she pays the workers, who I guess are her employees and the employers are actually employing her and not the nanny/babysitter etc.

I will look into it a bit more - thanks!

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OutragedFromLeeds · 09/09/2013 21:54

I don't think she can be self-employed, there's a lot more to it than 'sending someone else to cover'. Phone HMRC, they have a helpline where you can explain all this and they'll tell you if she qualifies. Otherwise we could all set up agencies and employ ourselves as nannies!

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