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Lay Off Clause - Fair?

35 replies

nannynick · 24/05/2015 17:36

This has come up a few times on here over the years. As we approach the Summer Holidays, this clause in some nanny contracts might be actioned, so I wondered what the current feelings are about it.

Here are examples of the clause:

(this was posted by a Mumsnetter in 2011)
"There may be occasions when the Employer is on a family holiday in the UK or abroad and your services are not required for the duration of the holiday. In these circumstances, the Employer reserves the right to lay off and you will be paid statutory guarantee payments during the period of lay-off."

"There may be occasions when your Employer does not require your services. In these circumstances your Employer reserves the right to lay you off and you will be paid statutory guarantee payments during the period of lay-off."

Gov.uk says that the max amount of Statutory Guarantee Payment is £25 per day for up to 5 days in a 3 month period.

A variation on this could be where there is a Percentage Paid

"The employer reserves the right to lay you off and agrees to pay you x% of your pay for the duration of such lay-off."

Do you feel clauses like this should be used for when a family go on holiday, where the nannies annual leave entitlement has already been fully used (with prior authorisation from employer)?

Should these clauses be in contracts by default or just an option that could be added in special circumstances, or maybe they are not appropriate at all in a nanny contract?

Some parents would not dream of not paying their nanny their usual wage in circumstances where the family go on holiday more often than the nanny gets holiday entitlement. Others though will use whatever the law allows as a means to pay little or nothing.

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Karoleann · 26/05/2015 22:41

I remember it being on a couple of contracts I looked at when I was writing my first nanny contract and I removed it.

Very unfair.

Blondeshavemorefun · 26/05/2015 16:44

Wow. That's unusual

And yes happy to do child related chores if have extra holiday but have always been given time off and normally go away myself

TranmereRover · 26/05/2015 16:21

as an employer, I'd say this is really unfair, however for a nanny stuck on the wrong side of one of these clauses, I'll bet my bottom dollar they'd find alternative temp employment over the period from families who are desperate for help in the school holidays, so if an inexperienced nanny finds herself stuck, I would imagine it's relatively easy to become unstuck.

Equally, I do take exception to the posts that come up here every now and then where a nanny who is being paid full pay over a holiday period but is not taking it as their own holiday allowance takes exception to being asked to work during that period. If they're on full pay and not on holiday, getting name tapes on ready for September / heading to the uniform shop / clearing out the toy cupboard are absolutely fair game. A little light houseplant watering / hamster cleaning thrown in too. Reason on both sides.

YesThisIsMe · 26/05/2015 16:15

..I am aware that there are some circumstances in which like that might possibly be enforceable, but none of them will apply to me.

YesThisIsMe · 26/05/2015 16:14

Flagrant restraint of trade clause forbidding me to work in the same industry for six months after my notice period was served out, imposed on me when I moved from contract to permament. HR were absolutely adamant that is was non-negotiable and in the end I just signed it, safe in the knowledge that it was utterly unenforceable due to the fine work that William Wilberforce did two hundred years ago in abolishing slavery in the British Empire.

Blondeshavemorefun · 26/05/2015 15:58

thisisme what is the clause you agreed to but didn't want to and why agree to it if so insane?

Liosalfar · 26/05/2015 15:22

This clause was in the nanny contract I was provided with from the payroll company and in the one from the nanny agency - I removed it before giving the contract to my nanny as I would never have asked her to accept this ( actually I removed/altered so many clauses I might as well have just drafted from scratch in retrospect Wink)

fairgroundsnack · 26/05/2015 11:35

I am a nanny employer and wouldn't dream of including this kind of clause in my nanny's contract. I wrote my nanny's employment contract myself (I am a lawyer). I would have been embarrassed to have even suggested it - completely unfair on a nanny to not be paid because we didn't need her.

nannynick · 26/05/2015 11:23

I assume, sadly, Luna that the point is that most inexperienced nannies without the cash to pay for legal advice or a union rep will just roll over and assume that they have to do whatever their contract says.

That alas is also what I would assume. Unless you know something about contract law you may consider a clause such as this to be normal and accept it.

Nannies don't really have a Union, they do now have an Association (www.bapn.org.uk) in the UK which they can join and get advice from but many are not members.

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YesThisIsMe · 25/05/2015 22:54

I assume, sadly, Luna that the point is that most inexperienced nannies without the cash to pay for legal advice or a union rep will just roll over and assume that they have to do whatever their contract says.

I've got a madly unreasonable clause imposed in my employment contract. In the end I signed expressing that it was under protest and I had no intention whatsoever of abiding by such a grossly unreasonable clause if push ever came to shove.

But I'm a middle aged professional with legal experience and two barristers in the family.

littleladyluna · 25/05/2015 22:17

NannyNick fair point, I know of lots and lots of nannies who did not sign contracts until in the job, and then feel like they can't disagree with points as they don't want to rock the boat.

Also, despite being provided by a nanny payroll company, there are various issues with some of these default contracts provided by them. One of those issues is that (and I think I know which particular contract you're talking about NannyNick) is that it is so heavily weighted in favour of the employer that it could be deemed manifestly unfair, and so the nanny could not be held to it - in which case, what on earth is the point?!

RattieofCatan · 25/05/2015 20:23

I wouldn't sign a contract with that clause, it's really bloody unfair.

I did have a clause saying that the family didn't have to pay me the full amount in an old job but as it was one of my first live-out positions I didn't query it, it was 80% of normal wage IIRC but they only did it once.

0x530x610x750x630x79 · 25/05/2015 19:44

I have (well am looking for a new nanny) a nanny but i would never include a clause like that, unless i knew i was going away for something like 3 months in the summer, so a long enough period to get temporary work.

When our nanny started she was very young so i insisted she got her dad to sign it as well as her (he knows his stuff, we know him) and didn't want there to be anything unfair in it (standard template from web).

YesThisIsMe · 25/05/2015 19:14

I don't think there are any circumstances in which that sort of short notice short period layoff would be a reasonable mutually satisfactory arrangement, no.

Cantkinsale · 25/05/2015 19:02

I wouldn't agree to it. I can come in on a Monday morning to be told they're going away for 4/5 days from Thursday. not enough time to look elsewhere for work to cover the lost wages. Their choice to go away.

nannynick · 25/05/2015 18:14

The lay off thing seem to only apply for 5 days in any 3 month period, according to Gov.uk (yeah I know, can be rather simplified), so it would not be useful if the family was to go away for 6 weeks.

I am wondering if these clauses are being included by payroll companies by default for some reason. If parents want to add such a clause and discuss it with their nanny, then that is reasonable but having it included by default?

Many nannies will not sign such a contract but some won't read it or understand it, or may feel pressured into agreeing. Imagine yourself at age 19/20... did you know much about contracts, know that this sort of clause is not something you want in the contract?

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YesThisIsMe · 25/05/2015 17:55

If I were in a situation as an employer where I knew I was going to be out of the country for many weeks each year - e.g. a full 6 weeks each summer - then I'd investigate whether a clause like this might be acceptable to prospective employees. Maybe they've got family in Australia that they'd like to take an extended break with. Maybe they'd be happy to take an alternative summer childcare job with their retention contract payments on top. But I'd be up front about it and endeavour not to be exploitative. If it works for both parties then that's good, but if it doesn't then I'd need to suck it up and go for another option.

PenguinsandtheTantrumofDoom · 25/05/2015 17:45

Worrid - I don't think so because there is specific provision in employment law for correctly formulated lay off clauses. However, I've not had direct involvement in them so I'd not be sure exactly what you need to do to have a compliant one. And whether it could be challenged in a nanny setting.

Maryann1975 · 25/05/2015 17:35

I'm a cm and charge full fees when families are on holiday (I know childminding is different to nannying but it's a similar situation I think). Some families query it, but they can take it or leave it. I won't budge on it. Why should I not get paid just because you are choosing to take a holiday.

i used to be a nanny and wouldn't have signed a contract with that clause in. My bills need paying 52 weeks a year.

FlorenceMattell · 25/05/2015 15:10

I have been presented with this clause in the contract by current family and asked for it to be removed. They agreed. Then when hours changed and contract rewritten they tried to include it again. I refused to sign unless contract amended and they agreed.
I think it came in the draft contract from payroll company. I don't think they are planning to be away for more than a couple of weeks.
To be honest I would give notice if I was employed but not being paid.

worridmum · 25/05/2015 14:56

Wouldnt that clause be deemed as a unfair/unenforcabe (i cant remeber the proper term for it) and thus would be unenforcable eg a contract cannot have unlawful / explotive terms eg paying less then minium wage contractally or less then legal requirment for holidays along those lines

Or I am remebering my employment law wrongly from university (its been years since I have done employment law

littleladyluna · 25/05/2015 11:04

I agree with the pp who said that nannies should know what they're signing before they sign it. What happens so often is that nannies sign whatever is put in front of them and then run to the help boards asking how to resolve it when something crops up. There is usually very little to resolve - you should have read the contract! If you didn't understand something, ask someone to explain it to you or go to the forums before you sign.

I think a lay-off clause is pretty awful when included in a nanny contract, especially when the contract in question stipulates an annual wage to be paid in instalments - which would lead most people to think they were safe from this kind of thing.

PenguinsandtheTantrumofDoom · 25/05/2015 09:54

I don't currently have a nanny. But when I did, no absolutely not. I don't know what the standard template would have looked like as I drafted the contract myself (I'm trained to do it btw. Wasn't a bodge job!).

My personal view is that such clauses are not appropriate at all in nanny contracts. If you have a factory and have no orders coming in, having a lay off clause may be the deciding factor between being able to 'pause' things and hang on til some come through or closing. When you employ a nanny you should have budgeted for his/her salary and the whims of your holidays shouldn't affect that. I think the only moral use of lay off clauses is if it protects employment that may otherwise have to be terminated.

nannynick · 25/05/2015 09:49

Parents with nannies - do you have a clause like the examples in your nannies contract?
Did you write it, or instruct the payroll company to include that clause, or it just come as default?

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nannynick · 25/05/2015 09:45

A cleaner is not usually an employee, they are a contractor. So the relationship is different but I know families who feel the same as you and do pay their weekly cleaner every week regardless of family being away.

Is it the relationship level which determines if this clause is reasonable or not?

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