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  • Advice for employers
  • Last updated 02 January 2024

Employing a nanny - what does it mean?

Employing a nanny can be a great way for busy parents to balance their work and family commitments. A nanny can provide personalised and flexible care for children in their own home, allowing parents to feel confident that their children are well-cared for while they are away. However, employing a nanny also comes with certain legal and financial responsibilities that parents should be aware of before making the decision to hire.

Firstly, it is important to note that a nanny is considered an employee, rather than a self-employed contractor, under UK law. This means that parents who employ a nanny are responsible for deducting Income Tax and National Insurance contributions from their nanny's salary and paying these to HM Revenue and Customs (HMRC) through the PAYE system. Parents must also provide their nanny with a written contract of employment, which outlines their duties, pay, and terms of employment.

In addition to these legal requirements, parents must also ensure that they meet their obligations under UK employment law. This includes providing their nanny with a safe and healthy working environment, ensuring that they receive the National Minimum Wage (or National Living Wage if they are over 23), and providing them with paid annual leave and Statutory Sick Say. Parents must also ensure that they comply with any other employment-related legislation that may be relevant, such as discrimination laws or health and safety regulations.

When it comes to finding a nanny in the UK, there are a number of options available. Some parents choose to hire a nanny directly, either by advertising the position themselves or by using a recruitment agency. Others opt to use a nanny share arrangement, where two or more families share the services of a single nanny, splitting the costs and responsibilities between them.

Regardless of how a nanny is hired, it is important for parents to conduct thorough background checks and obtain references before offering them the position. This can include checking their qualifications and experience, as well as obtaining criminal records checks and verifying their right to work in the UK.

Overall, employing a nanny in the UK can be a rewarding and convenient option for busy parents. However, it is important for parents to be aware of their legal and financial responsibilities as employers, and to take steps to ensure that they comply with UK employment law. With careful planning and attention to detail, parents can enjoy the benefits of having a dedicated and trusted caregiver for their children, while also fulfilling their responsibilities as responsible employers.

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