Nanny Contracts - Any Tips/Pitfalls?

[Earlybird]

I have found a fab nanny, and after initially agreeing to a summer job, she has now committed to stay with us for the next year. Her agency has sent me a suggested standard one page contract with the following clauses: remuneration, hours of work, entitlement, sickness, pension, confidentiality, discipline and termination. There are instructions to delete clauses that are not relevant.

The nanny is live out, no car, 4 afternoons (12-7) per week, plus one evening and sole charge for one child (dd who is 3.5). I am paying her National Insurance in addition to an agreed weekly rate for a set number of hours. My questions:

• how much paid holiday should she have?
• how much sickness allowance should she have?
• how many weeks notice is standard for termination of employment on either side?
• any suggestions from mumsnetters based on past experience - both good and bad?

I have never had a contract with a nanny before, so any tips would be much appreciated.

I have a full time live out nanny. She gets 4 weeks paid holiday - her contract says that she can choose when 2 weeks of it is and we can choose the other 2 weeks, although in practice we all talk about it ages in advance. The contract says that we do not pay sick pay, although I think that means she would still get statutory sick pay (obviously when she has the odd day off sick we still pay her). The contract also says that we do not operate a pension scheme. I think we have 6 or 8 weeks notice (each way) - basically it has to be long enough to allow you to find another nanny.

I did a fairly full contract and I think it worked really well. Firstly I think it helps our nanny feel as though it is a "proper job". DH and I are both lawyers, but know zero re employment law and this is really simply written: our nanny was 21 when she started and we didn't want to overwhelm her. I've put in lots re her job description and what we expect her to do (for example looking after children's clothes, washing and ironing them and packing when we go on holiday - tee hee, my least favourite job). My top tip would be to make it really full to start with and have a real discussion about it. Then as you relax things - as you inevitably do - you look generous, not like you are trying to pile extra tasks on her.

I haven't looked at mine for over 2 years, but I think that that is a good sign (actually I should probably get it out and go over it as circumstances have changed quite a bit). Also, I know a couple of people who really wished they had had a contract, but don't know anyone who had a contract who wished they hadn't!

Anchovy - thanks very much for feedback and suggestions. Anyone else?

I think it's best to have a formal agreement while you are both strangers as it is easier as positions are both clear. If you do this once she has started, it becomes awkward.
In answer to your questions:
Paid hols: as this is a four day week, hols are pro-rata. I'm pretty sure the statutory requirement is now 4 weeks to include bank hols but nannies generally ask for 4 weeks plus bank hols and its up to you during the negociations to deal with this.
Sickness allowance: I would say no sick pay is paid for the first six months and thereafter it's discretionary. If she questions this, you could say, if you are employed for 2 months and then you take 2 weeks off sick, what am I to do? etc.
Standard termination: this is generally 4 weeks although I would do one week (if you can) during a probationary period of three months.
You say you are paying for her NI, you are by law obliged to pay her tax and it is costly. If she worked on an ad-hoc basis, she could be self-employed but as she will be in a regular post, you are her employer and you should be paying it.
Re: sick pay, statutory sick pay kicks in after three days so if she is sick for three days or less, it is not payable. If it is more than three days, then it is payable.
There is a company on the internet called NannyWage who are competively priced to do all the tax and NI. About £99pa + VAT which is good.
Oh! Re: Anchovy's advice, if you opt for a 6-8 week notice period and you want her to leave after one week, you are obliged to pay her notice in lieu. Also, the hols, I would agree that it is fair to give her 2 weeks to choose and you choose the dates of the remaining 2 weeks.

Re sick pay - we have a clause in our contract that says there is no right to sick pay but we will exercise discretion on a case by case basis. I have never not paid it but then I've never had a nanny take advantage of it - I wanted protection against too many Monday morning hangovers or the unlikely and unfortunate event of a broken leg etc.

I also agree with Chicpea that you must consider income tax as well as National Insurance - unless you are certain that she is considered self employed by the Inland Revenue then you are likely to be liable for her tax bill.

Have to say I'm a bit shocked that people don't pay sick pay! We have up to three days - then ssp kicks in. Would any of you accept a contract where you weren't entitled to sick pay? I wouldn't!

Early-bird - another thing that might be worth putting in is about expenses - ie that you will reimburse "reasonable" ones and if you are at all unsure about her money sense (though as she's already worked for you maybe not) you could say in the contract that any spending over x amount in a single day should be agreed in advance - and also how she's expected to account for them.

Another thing worthwhile is whether she's entitled to meals - hasn't been a problem with us but I have heard some people say that they and the nanny have had different ideas of what's a reasonable amount for them to eat.

Is there any likelihood that you might want to swap one of your 4 days every now and then? If so that might be worth a mention - we have a bit that says that either of us can ask to swap, from time to time, and the other will give it due consideration - though there's no obligation. Obviously an understanding like that doesn't have to be in the contract but it doesn't do any harm.

One thing I would definitely have in is a grievance procedure and reasons for immediate termination - ie a definition of gross misconduct - needs to include specific things ilke being drunk on duty, endangering the children, theft. but should not be limited - it needs to be your get out clause if things go horribly wrong.

Keep thinking of more - overtime - and what happens if you're late home from work or she's late in the morning. Again - doesn't really need to be in the contract but definitely worth discussing

Hatter I hear what you say about sick pay but agree entirely with Mrs Wobble about Monday Morning Blues and why pay somebody for that? If somebody is genuinely sick, then pay it by all means. I have had previous employees at the office leave a message on the answerphone, not call to speak to a manager, the manager has dug out home phone number on 2nd sick day which employee has forgotten about, rings up and the mother says employee is at work. Manager says this is her office and mother says oh, then maybe she is having her driving lesson. Should I pay sick pay for that? At this particular time we were short in the office due to people being on holiday.

My DH had 10 shops around London many years ago and most of the sickness days were taken on a Monday. He had to have an extra roving 10 employees to cover sickness only which was expensive. When he withdrew sickpay, he cut absenteeism due to sickness by 90%. Unfortunately, when you employ people for a number of years you can become cynical.

of course you shouldn't pay sick pay for that - you should sack them for it! Having sick pay in the contract would not mean you would have to pay them for that, and assuming you had a suitable gross misconduct clause it would entitle you to sack them. (or, if you're feeling kind give them a written warning). I just feel that there are other ways of handling absenteeism (in the case of nannies - I have no experience of wider employment) than expecting someone (who may well turn out to be utterly trust-worthy) to settle for a contract that does not protect them against illness, ie a contract that I myself would not be willing to accept

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It might not be legal to give someone a contract without sick pay so the discussion about it might be irrelevant. I think you should check the law. I agree with hatter re this though. You can't (IMO) give someone an unfair contract because they might take the piss at some future point! You should have a part of the contract that deals with this separately IMO.