Understanding your legal duties as an employer
Here at Nannytax we often get asked ‘what are my legal duties as a nanny employer?’
To ensure you are fully aware of your responsibilities we have created a useful guide below.
Contract of Employment
You must provide your nanny with a contract of employment or written statement of employment particulars, within two months of their start date. The contract should lay out the terms and conditions of the employment and should also detail their start date, place of employment and holiday entitlement (to name a few).
As part of our Nannytax payroll service we offer a free bespoke contract, created for you by our HR team.
Legal Checks on Employee
When hiring a nanny, it is your responsibility to undertake checks to ensure that the individual is eligible to work in the UK. This can include checking their ID documents such as a passport or Visa. If a Visa is provided you may need to check if there are any restrictions that may affect them working.
Registering as an Employer with HMRC
Before your nanny starts with you, you must register with HMRC as an employer and set up a PAYE scheme. If you choose Nannytax as your payroll provider, we will set this up on your behalf.
All UK employers are legally obliged to offer a pension scheme to their employees. If your nanny meets the age and salary criteria, they will be automatically enrolled into the pension scheme and you will be notified to start paying contributions.
Nannytax offers an end-end pension service which you can easily add to your Nannytax subscription. For more information on pensions why not visit our pension page.
All UK employers, including domestic employers, are required to have Employers Liability Insurance, which protects you should your employee become ill or injured as a result of their job. We offer our Enable Insurance Service to any nanny employer seeking a comprehensive Employers Liability Insurance policy, not just Nannytax clients. To find out more about insurance for nanny employers or to take out a policy, head over to our Employers Liability Insurance page.
As an employer you have a duty to provide a statutory holiday entitlement to your nanny. A full-time nanny is entitled to a minimum of 5.6 weeks’ holiday per year (28 days for a 5-day week) which is inclusive of bank holidays. If you need any help calculating this visit our holiday calculator page.
When agreeing a salary for your nanny the figure must be at or above the current National Minimum Wage requirements. As with any role, nanny salaries are dependent on the experience, qualification and location of your nanny. We would always recommend agreeing a salary in gross as it is more beneficial for both you and your nanny. To get an idea of the average gross salary in your region, you can take a look at our Nanny Salary Index.
Nannytax not only guides you through all the above legal responsibilities, we will carry out most of the administration burden. Contact Nannytax today on 0203 137 4401 to speak with our friendly team to find out more about our services, or you can subscribe online.