What Are Your Employer Responsibilities When Hiring a Nanny?
Hiring a nanny means taking on the role of an employer, which comes with several legal and financial obligations. From right-to-work checks to setting up payroll and contracts, understanding your responsibilities is crucial. In this guide, we’ll outline the key steps to employing a nanny, ensuring you stay compliant and provide a professional working environment for your nanny.
Right to Work Checks
Before hiring a nanny, you must ensure they have the legal right to work in the UK. As an employer, you are required to:
- Check original documents such as a passport, visa, or biometric residence permit.
- Verify these documents in the presence of the nanny.
- Keep copies for your records.
Failing to conduct right-to-work checks could result in fines and legal consequences, so it’s essential to follow government guidelines.
Employment Contract
A nanny employment contract is a legal requirement and must be provided on or before their first day of work. There is a considerable body of guidance on what the contract must contain which includes (but is not limited to):
- Job description and working hours
- Salary and payment schedule
- Holiday entitlement and statutory payments for nannies (e.g., sick pay, maternity pay)
- Notice periods and termination terms
Need assistance? Our contract drafting service for nannies ensures your agreement is legally sound and tailored to your needs.
HMRC & Payroll Registration
Once you hire a nanny, you must register as an employer with HMRC and manage payroll, which includes:
- Deducting Income Tax and National Insurance
- Enrolling your nanny in a workplace pension (if applicable)
- Issuing payslips and reporting to HMRC under RTI (Real Time Information)
At PAYE for Nannies, we handle all payroll requirements, ensuring compliance with tax laws while saving you time and effort.
Employer’s Liability Insurance
UK law requires employers to have Employer’s Liability Insurance if they hire a nanny. This protects you in case your nanny experiences a work-related illness or injury and needs to claim compensation. Many home insurance providers offer this coverage, but it’s important to confirm it meets legal requirements.
Statutory Payments for Nannies
Like all employees, nannies are entitled to certain statutory payments, including:
- Statutory Sick Pay (SSP) if they are unwell and meet eligibility criteria.
- Statutory Maternity Pay (SMP) or Paternity Pay if they become parents.
- Holiday Pay, based on at least 5.6 weeks of paid leave per year.
Next Steps – Let Us Help You
Understanding employer’s liability for nannies and managing legal requirements can feel overwhelming, but you don’t have to do it alone.
PAYE for Nannies offers a complete payroll and contract drafting service for nannies, ensuring you meet all employment obligations with ease.
