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contract of employment

As we approach the end of the Tax Year, we want to make sure you're aware of any employment law changes that may be on the horizon.

 

Employment law changes in April 2020

How will this affect Nanny Employers?

contract of employment

 

As we approach the end of the Tax Year, we want to make sure you're aware of any employment law changes that may be on the horizon. From 6 April 2020, some important changes will be coming into effect, these involve the contract of employment, holiday pay and the new Parental Bereavement (Leave and Pay) Act .

Find out more about how these may affect nanny employers below:

Contract of Employment Changes

Timings of the contract

Currently the law states that a contract must be provided to an employee no later than two months after they start their employment. From 6 April 2020, if you were to employ a new nanny you must provide the contract of employment from the very first day they start their job.

Terms of the contract

There have also been a few changes to the terms detailed within an employee’s contract, these include:

Details of training that the employee must complete

This should include any training that you haven’t financed for your nanny.

Any terms relating to an employee’s paid leave

This is in addition to any holiday or sick pay and now also includes any unpaid and voluntary work leave that your nanny may take.

Descriptions and terms of any benefits provided by the employer

As of April, any additional benefits that you provide to your nanny must be detailed in the contract. At the moment this is limited to pension, sickness and holiday benefits.

Don’t worry – employers who currently hire a nanny will not be automatically required to issue a new contract of employment in line with this legislation. However, your nanny can choose to request an updated version. If they make this request, you will have 4 weeks to provide them with this.

*If you are a Nannytax customer, please contact your HR advisors via the contact details in your Members Area and they will be able to sort this for you.

Holiday Pay Changes

Changes to holiday pay calculations for workers with irregular hours

If you have a nanny who works irregular hours there will be a slight change to how their holiday pay is calculated.

Previously, their holiday pay will have been calculated based on a 12 weeks average period - in other words an average taken from 12 weeks worth of working hours. This is now changing to 52 weeks.

Put simply, their holiday pay will be based on an average figure that's calculated over 52 weeks that they have worked, as opposed to 12. This should result in a 'fairer' average figure as it will take into account a year's worth of working hours.

Parental Bereavement

The new Parental Bereavement (Leave and Pay) Act will give all employed parents a day-one right to 2 weeks’ leave if they lose a child under the age of 18 or suffer a stillbirth from 24 weeks of pregnancy. It also states that primary carers (such as close relatives or family friends who have taken responsibility for the child’s care) will also be entitled to time off work.

Employees who have worked 26 weeks continously will receive paid leave at the statutory rate and those who don't meet this criteria will be entitled to unpaid leave.

 

If you hire a nanny, we’re here to help save you and your family precious time..

Our Nannytax Payroll Service removes the hassle of time-consuming tax calculations, paperwork and various other legal responsibilities that come with employing a nanny. We'll deal with HMRC on your behalf, provide your nanny with pay slips, offer unlimited support with calculations such as holiday pay, plus you'll have a team of HR advisors on hand for contracts and legal support. To find out more about what Nannytax can do for your family, head over here.