Paying cash in hand

As an employer looking to hire a nanny, you may be tempted to offer cash in hand payment to your nanny. However, there are several reasons why this can be a bad idea from your perspective as well.

Here we will explore the reasons why paying your nanny cash in hand can be detrimental to you as an employer.

Risk of legal issues and penalties

If you pay your nanny cash in hand, you are likely not following legal requirements for employment, including paying taxes and obtaining necessary insurance. If you are caught, you could face serious legal consequences, including fines and penalties. Moreover, if your nanny is injured on the job and you haven't provided the appropriate insurance, you could be held liable for medical expenses and other costs.

Lack of accountability and trust

When you pay your nanny cash in hand, it can create a lack of accountability and trust. Without a formal contract or payslip, there is no clear record of the hours worked or the payments made. This can lead to misunderstandings and disputes, which can damage the relationship between you and your nanny.

Limited access to employee benefits

When you pay your nanny cash in hand, you are not providing them with access to employee benefits such as sick pay, holiday pay, maternity/paternity/adoption pay or a pension. This can lead to your nanny feeling undervalued and less loyal to your family. It can also make it harder to retain a good nanny in the long term, as they may seek employment with families that offer better benefits and job security.

Difficulty in obtaining professional services

If you pay your nanny cash in hand, it can make it difficult for them to obtain professional services, such as a mortgage or a loan. Financial institutions often require evidence of regular income, which is difficult to provide when you are paying your nanny cash in hand. This can limit their options when it comes to obtaining financing for their own personal or professional needs.

Conclusion

In conclusion, paying your nanny cash in hand can be detrimental in several ways. It can lead to legal issues, a lack of accountability and trust, limited access to employee benefits, and difficulties obtaining professional services. As an employer, it's important to follow legal requirements and ensure that you provide your nanny with the appropriate employee benefits and job security. This can help to build a strong, trusting relationship between you and your nanny, and ultimately benefit your family in the long term.