Pregnancy and nannies - what's the deal?

[TeflonMum]

What happens when your nanny gets pregnant? Obviously she is entitled to maternity leave and pay like anyone else, but how does it all work?

Our nanny has been with us for a year and I have heard on the grapevine that she is pregnant. I'm assuming she will tell us herself soon.

I want to treat her legally and fairly (and nicely - she is fab and we love her and hope she will come back after her baby is born!), but there is no way on God's earth we can afford to pay two nanny salaries while she is on mat leave

Any advice on what we are legally obliged to do? And on what other's have done?

I believe that as a small employer you can reclaim all of the Statutory Maternity Pay that you pay your nanny. There's a few websites that mention this. Have a look at Nannytax.co.uk, they have a brief run through on rights and obligations.

I believe you organise her maternity pay, but are reimbursed by the gov't. She is an employee just like any other so is entitled to all the usual perks (H&S assessment, time off for ante natal appts, etc.) She has to give you notice as I've just been reminded on another thread of 15 weeks before EWC. She has a right to return to her job, etc. etc. etc.

You don't have to pay two salaries at the same time. However, you will have to pay a nanny at a higher temp rate while she is on mat leave. That's the bit I would find painful. But, you don't really have a choice.

Teflon - the government gives you all the money for the maternity pay - in fact, you get it all in a lump sum up front, so just make sure you put it into a separate account and don't spend it !!!!
if you get a temp nanny through a nanny agency, it can be very expensive - so see if you can find someone yourself. that's what I did.

Here is the official guide to what you need to know.

That sets out the minimum you have to do, but of course you can do more. One thing which might work well for you is conditional maternity pay. This is where you agree to pay more than SMP for a certain period, but you can make it a condition that she must pay it back if she does not return to work for a qualifying period (often 3 months) after her ML.

Useful links:
HMRC: SMP Recovery
HMRC: Statutory Payments Funding
HMRC: E15 - Employee Pregnant