Holiday entitlement needs to be clearly understood by both the employer and the nanny and PAYE for Nannies is happy to advise clients in respect of their particular circumstances. It is advisable that the arrangements are agreed before any contract is drawn up.
In essence, since 2009 all employees are entitled to 5.6 weeks paid holiday per year. (28 days for a nanny working 5 days a week.) If a nanny works for less than 5 days a week, the holiday week is shortened to reflect this. e.g. If a nanny works for 2 days per week, she will receive paid holiday of 5.6 weeks of 2 days, making a total of 11.2 days paid holiday per year INCLUDING any Bank Holidays that fall on normal working days. The extra 1.6 weeks, on top of the pre-2009 entitlement of 4 weeks, is meant to compensate employees who may previously have not been entitled to any paid Bank Holidays because they did not fall on their working days. Bank Holidays (if paid) will therefore be counted against the overall holiday entitlement.
Although an employer is legally entitled to specify the dates of all holidays a nanny takes, the convention is to allow the nanny to choose two of the weeks and for the employer to choose the remainder. Any contract should also specify whether any Bank Holidays are regarded as working days or if, as is usual, they a will always be regarded as holidays. This is a particular consideration for part time nannies who work for one or two days a week including a Monday, because a disproportionate number of Bank Holidays fall on a Monday.
It is also usual to specify that during the first year of employment, holiday can only be taken once it has been accrued. (e.g. for a nanny working 5 days a week, holiday is accrued at a rate of two and one-third days per month worked, including the extra Bank Holiday entitlement mentioned above.)