***The information given on these pages is the legal stance based on the government advice, please be mindful that this advice can change. This is the absolute minimum required by law. It is the Employer's decision whether they need their employee to work and what they pay to their nanny, you are allowed to pay above the minimum if you wish to. Making decisions about whether to pay more than the minimum can be a very difficult one, you will need to consider many things, such as, your future relationship with your employee and the affordability for you and your employee in these troubling times. It is wonderful to see that many employers have been able to retain their employees on full pay during this pandemic, but we appreciate that some will not be able to. Please be assured that this is your decision to make.***
Copy of email sent to clients on 05/04/20.
On Saturday 4th April we were pleased to see gov.uk updated its guidance on the Coronavirus Job Retention Scheme to explicitly state that the employer of a Nanny will be eligible for the grant. (See copy of our E-shot here).
Copy of email sent to clients on 03/04/20.
We are very pleased to now have a gov.uk source confirming that all employers will have access to the Coronavirus Job Retention Scheme. This reliable source no longer refers to businesses or organisations and is unambiguous in the inclusion of all employers in the scheme. NannyPaye in no way underwrites your costs should you or your employees’ status not meet the criteria for the Coronavirus Job Retention Scheme grant when published by HMRC.
Please see the referral link below:
If you wish to furlough your Nanny please can you follow these steps:
- You must gain your employees permission to move them to furlough. Please use our template letter linked here to help with that process.
- Once you have the signed agreement e-mail firstname.lastname@example.org quoting the date you have agreed your furlough to start and if you are paying 100% or 80% of the gross wage.
- Once details on how to claim your grant are released NannyPaye will contact all clients again with further guidance and instruction.
Please see a list of the most common furlough queries we have received
How much do I pay my Nanny under a furlough agreement?
Your Nanny should be paid no less than 80% of her gross wage or £2500 per month gross whichever is the lower of the two. We are seeing a fairly even split of employers paying 100% or 80% of the full wage.
How much will the grant refund me?
The grant will cover up to 80% of your employees normal gross pay (capped at £2500 per month) plus the associated Employer National Insurance and minimum Employer Pension contributions.
Can I backdate the furlough?
Yes so long as the criteria is met you can backdate to 1st March 2020.
If I pay my Nanny 100% of her normal wage will I still receive a refund?
Yes. The grant will still refund you the 80% of the normal gross wage plus pension and employer NIC.
My Nanny is self-isolating for non-medical reasons or is worried about coming to work. Can I furlough her?
You should only furlough an employee if you would have otherwise made them redundant or laid them off. If the role still exists and you require an employee to work in that role, then your Nanny should not be furloughed.
When do employers normally furlough a Nanny?
The most common occurrence is when both employers are at home for an extended period and can perform the childcare role themselves. This is not necessarily the same as both employers ‘working from home’ as childcare will often still be required in that scenario.
When did my nanny have to start?
You can only furlough an employee that was in your employment and the RTI sent to HMRC on or before 19th March 2020. As RTI data is sent towards the end of the month this means it's unlikley that you will be able to access furlough funds for employees that started in March and are paid monthly.
When did I have to be registered as an employer?
Your PAYE scheme must have been active on 19th March 2020. We imagine this will be a contentious issue as many employers join payroll services after employees have started.
I have a net agreement. Will my Nanny get 80% of her net?
Net agreements are not widely recognised and cause confusion in situations like this (another reason to go gross please). If the employer is paying 80% we have to set the pay at 80% of the historical (previous months) gross. This will leave the nanny with slightly more than 80% of the net.
What if my nanny refuses to be furloughed?
This question has not yet come up but if it does then our answer will be that you should consider Redundancy or Lay Off as your only other option.
My Nanny is shielding can she be furloughed?
Yes. So long as she is specifically shielding due to a personal condition on the shielding list she can be moved to furlough.
How long can I furlough for?
A minimum of 3 weeks up to a current maximum of 30th June 2020.
Can my Nanny do any work whilst furloughed?
No. She also cannot be on SMP, SSP or holiday. She must be available to work but not working.
Can my Nanny take holiday whilst furloughed?
Yes. Guidance has recently been released (17/04/2020) confirming that employer/employee can agree for the employee to take annual leave whilst on furlough. If leave is taken then the salary must be made up to 100% of the normal pay if it is not already at that level. The employer can still claim for the furlough grant for these days at 80% of the normal pay. If a bank holiday falls on a normal working day whilst on furlough this can either be paid at 100% or the day carried forward to be taken at another time. Due to the late nature of this guidance (after the Easter Bank Holiday) we expect most clients to carry forward the untaken bank holidays.
Please click on the below links to see the previous E-shots that we sent to our clients about COVID-19