Redundancy pay explained PDF Print E-mail

There is a lot of confusion in the nanny industry on the issue of redundancy. Many nannies, parents and nanny agencies assume that because of the unique circumstances that exist between a nanny and her employer, she doesn't qualify for redundancy pay. But providing she meets the requirements she is entitled to redundancy pay just like any other employee.

In order to qualify for redundancy nanny needs to have been in continuous employment for at least 2 years.To qualify she must be 18 or over and have at least two years continuous employment. This means that she must have been working for the same family, without any breaks, apart from maternity, sickness and unpaid leave, for at least two years. She must also be working as an employee under an employment contract and have a PAYE scheme set up. This does not mean that she needs to have a written contract, as some employers unfortunately don't provide this. She is still considered an employee working under a contract even if there is nothing in writing.

If the employer's circumstances change and they no longer have a full-time job for their nanny, perhaps due to the children attending school full-time or one of them working part-time, and they want to employ a nanny on a part-time basis, they are required to first offer the "new" position to the existing nanny. If she chooses not to continue working for them under the new conditions she is still entitled to redundancy pay, unless she is on a fixed term contract.

She will also qualify for redundancy pay if the family moves to a different part of the country, providing there is no relocation clause in the contract.

How much your nanny is entitled to is dependent on her age. Please refer to the rates and thresholds page to see current redundancy pay entitlements.

As an employee on PAYE, your nanny is legally entitled to these amounts; however, as the employer, you are free to pay more than the statutory minimum. No part of the costs can be claimed back from the state. Nanny does not have to pay tax on redundancy payments up to £30,000.

For further information on redundancy pay, please contact Nannytax.
 

employment law support

The Nannytax 'ISA and nannies' petition

Did you know that nannies are the only childcare providers in the UK not required to have a CRB check or a first aid certificate? In addition nannies are not obliged to be Ofsted registered, and the new Independent Safeguarding Authority (ISA) also excludes nannies from compulsory registration.

The vast majority of nannies are trained professionals and provide excellent care to young children, and without their dedication many families would struggle. Nannies are an especially good childcare option in the current economic climate because they offer more flexibility than any other childcare provider, and if you share a nanny with another family it can be very affordable. Nannies are no longer just for the wealthy.

However, as the ISA comes into effect later this year those individuals who wish to harm children will no longer be able to get work without first becoming registered. And so the risk is that they will exploit the loophole and apply for nanny positions. Nannytax believe it is highly irresponsible that the safety and welfare of our children remains compromised because the Government continue to exclude nannies from childcare legislation. With several recent high-profile child abuse cases all too fresh in our minds, how can the Government put yet more children at risk?

Please join the campaign and sign out petition now

employment guide

Q&A on redundancy

Employers must follow certain procedures regarding informing and consulting with employees when they are planning redundancies. Employees, including nannies, are entitled to receive a statutory redundancy payment when they have worked for the same employer for two years or more.
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information on the Ofsted register

Ofsted registration criteria
In order to become registered with Ofsted your nanny needs to meet certain criteria. For instance, she needs to have public liability insurance and a valid first aid certificate.
Read more...