Ending nanny contract due to maternity leave

[mercator]

I wonder if anyone help in terms of what they have done to end a contract owing to mother going on maternity leave. We will be unable to keep nanny on. I intend on going on mat leave a month before baby is due in July. She has been with us for 18 months.

So presume we would need to give her redundancy pay?

Any help gratefully received.

It will be redundancy and pay kicks in after 2 year continuous service, so July may or may not qualify. If she's just short it would be a nice gesture but wouldn't be tax free.

I would consider also whether you will appreciate the help at the end of pregnancy/while you give birth/in the early days. September is often a better time for a nanny to find a new job.

Statutory redundancy pay only kicks in after 2 years, but any payment for redundancy up to £30,000 can be paid free of tax and NI - note that this doesn't include any payment in lieu of notice or accrued holiday which must be paid through PAYE as normal.