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Nanny Contracts Tips
Nanny and Family Contract
A nanny and family contract is typically a legal document that has been reviewed, signed, and even notarized by both parties. There are many sample nanny contracts that can be found on-line. These contracts usually spell out in detail what is expected of both the nanny's services and the employing family's obligations toward the nanny. In most cases, the nanny contract covers at least some of the following items:
Salary-This may include health insurance, taxes, etc.
Work Schedule-A specific work schedule should be agreed upon with definite hours outlined in advance.
Probationary period-Many employing families and nannies prefer a probationary period before a final contract is signed.
Children's activity schedule-A nanny will need to know about the children's activities, including her own duties regarding these activities.
Meals and housekeeping-Any extra duties should be outlined as well.
Use of a car-Will the nanny need her own car, or will she be allowed the use of one?
House rules-What are the rules regarding bedtime, snacks, TV, play dates, etc.?
Termination notice-How will terminations be handled? Will warnings be issued beforehand?
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Nanny Tip: Creating a Nanny Contract
Before hiring a nanny, take some time to create a nanny contract. Basically, a nanny contract is a written or typed document that outlines (in detail) everything the newly hired nanny is expected to do. You could compare a nanny contract to a job description. Ideally, the nanny would have time to read it over (on her own) and then return with the signed document, completely okay and aware of what’s now expected of her.
Nanny contracts don’t have to be filled with legal jargon that nobody can understand. It’s just something to fall back on in case there are any misunderstandings between you and the nanny. A sample nanny contract would contain the following headings:
Position:
Date of Hire:
Name of Employee:
Hours of work per week:
Compensation for overtime:
Benefits:
Expected Daily Job Duties:
Expected Occasional Job Duties:
Live in or Live out:
Number of children in the home:
Ages of children at contract signing:
This is just an idea of what to include in a nanny contract; however, to take a look at other sample nanny contracts, do an Internet search, or ask someone you know who has a nanny to see how they created their contract, or look at online nanny placement agency websites to see samples.
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Sample Nanny Contract
You can typically find a sample nanny contract on-line. If you are using a nanny agency to help you find and employ a nanny, they will usually provide a generic sample nanny contract for you to use or to modify. Modification is the key to a successful nanny contract. Even if you find a sample nanny contract on-line, you'll probably need to modify it somewhat to suit your needs and the needs of your nanny. It is important that every possible issue regarding the employment of your nanny is spelled out in the nanny contract. While some issues, such as who puts the children to bed or who fixes their breakfast, may seem trivial, similar issues could cause misunderstandings and lead to strained relationships between a nanny and her employers. A nanny contract will protect the rights of both the nanny and the employer. A sample nanny contract will generally cover the following:
Salary and wages
Benefits
Health insurance
Vacation time
Overtime
Duties and responsibilities
Emergency care
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Documenting a Nanny Contract
In many cases, families and nannies seek the extra protection that documentation of a nanny contract could provide. While the nanny contract may not be that legally binding if taken to court, there are some instances in which the contract should protect the interest of both the employing family and the nanny. Immediate termination or resignation, abuse, withholding payment, lapsed insurance policies, and other issues may need to be resolved within a court of law. Because of this, it is important to document the nanny contract. This can be done in a number of ways, including the following:
If the parties involved are using a nanny agency, the agency should keep a record of all nanny contracts and agreements.
If the parties used a lawyer, the lawyer should have the nanny contract signed and notarized before filing the contract and issuing a copy to each party involved.
If the parties have drawn up the nanny contract without any legal aid, they should sign the contract before a notary public, and each party should be given a copy of the nanny contract.
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What To Put In a Nanny Contract
A nanny contract should address the needs of both the employing family and the nanny. Nanny contracts aren't difficult to write, and in many cases, the family will write a standard contract, ask the nanny to look over it, and then amend the contract to suit the needs of both parties. A nanny contract should have the following items included in most cases, however.
Names of both parties.
Social security number of the nanny.
Addresses of both parties.
Number of children to be cared for.
Starting date of employment.
Salary per hour, week, week, or month.
Specified work hour times.
Salary pay date.
Amount of employment hours per week
Tax information.
Health insurance if applicable.
Paid vacation leave.
Paid holidays.
Overtime pay.
Room and board information.
Duties
Transportation
Child care expectations
Emergency management
Raises, bonuses.
Reprimands, grievances
Notice of termination or resignation
Signature of all parties.
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Pay Increase for a Second Child
Even though the older child will be in school for six hours a week, you will also be in charge of taking care of the newborn. Newborn care is often much more taxing that caring for older children. Depending on your comfort level with the family, and your areas' standard nanny salaries, asking for a 15 to 25 % raise would be within reason.
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Sick Leave
Special attention should be paid to the portion of the contract that deals with absences and illness. There are two main considerations when deciding these contract terms. The first is whether or not the nanny will be required to work when the children are sick. If the family would prefer to stay at home with their children when they are sick, than the nanny will either have a day off without pay or a vacation day. It is important to remember that not paying the nanny for days when the children are sick and she is not working is penalizing her for a situation that is out of her control. Most families, however, choose to have their nanny care for the children when the children are sick. The other situation to cover in the nanny contract is the nanny's sick time. There should be a set number of paid days per year that the nanny can take as sick days. Anytime over this will be unpaid sick leave. The nanny and family should also discuss if the nanny should call in sick the previous night before her missed day, or if she is able to call in the morning.
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What is a Nanny Contract?
A nanny contract is a written business document that is designed to protect both the nanny's and the family's interest. When employing families and their nannies do not enter into a contract, confusion and misunderstandings could occur. Arguments over vacation time, nanny duties, paid leave, benefits, and overtime could result. The nanny should understand and agree to the conditions outlined by the employing family before she agrees to sign the nanny contract. On the other hand, the employer should also consult the nanny on specific items, such as salary, benefits, insurance, and paid leave, before having the nanny contract drawn up. Once a nanny contract has been read and agreed upon by both parties, the nanny contract can then be signed and notarized. Both parties should receive a copy of the signed and notarized nanny contract.
A nanny contract can protect the personal and legal interests of both the nanny and the employer. The nanny contract should be agreed upon and signed before the business arrangement begins.
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Nanny Contracts Protect the Nanny and Family
A nanny should not start work until there is a contract in place. The nanny contract is not only a legal document, but it serves as protection for the nanny. The contract should list payment (both regular and overtime), outline duties and serves as a point of understanding for the parents and the nanny. The nanny is protected from being asked to do duties above and beyond her normal responsibilities. Since nannies work in the home, it is common for parents to assume that they have lots of time to do things around the house. A nanny contract formally sets the boundaries between the nanny and the parent's household. If you are a nanny and a contract is not set forth at the beginning of your employment with a family, it is advisable to suggest a contract, provide examples and explain the benefits for the family.
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Illegal Contract Terms
While a nanny contract should cover a detailed description of the nannies duties and her interaction with the family, there are some areas that should never be in a contract for legal reasons. This especially applies to contracts for live-in nannies. The employers have no right to specify where the nanny can go on her time off. They are also forbidden from insisting that the nanny go with them to religious services. There are also some requirements that are not necessarily illegal, but are excessive. It is not advisable to include specific instructions on how to do simple household tasks, such as folding the towels or washing the dishes. The family must understand that the nanny has her own way of doing these things.
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Nanny Salary
The nanny salary that you choose to pay your nanny should be spelled out in a nanny contract. A nanny salary may include the following items:
Health Care Benefits-Many employers choose to offer their nannies health care benefits. In some cases a nanny may choose to except a somewhat lower salary as long as health insurance is provided.
Taxes-Although you'll probably need to consult your tax accountant before ironing out the details of taxes, you will most likely add the taxes on top of the salary that you and your nanny have already agreed upon in the nanny contract.
Gas Allowance-If your nanny is expected to drive your children to soccer practice, piano lesson, and/or school, you'll need to either give her a gas credit card or an extra amount of money each month to compensate.
Overtime-Again, you'll need to discuss this issue with your accountant at length, but keep in mind that it may be necessary for your nanny to work overtime on occasion, and you should compensate her for doing so.
Bonuses-Typically, bonuses are added gifts for a job well done. However, you may decide to incorporate a bonus system for the amount of time your nanny remains in your employment.
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Nanny Contracts
A nanny contract should protect your interests whether your role is that of a nanny or an employer. A nanny contract should be read and agreed upon by all parties involved. Each party should be allowed to consult with a lawyer or any other legal representative before signing a nanny contract. Potential employers may wish to consult with or use a nanny agency for help in finding a nanny. A nanny contract should cover topics, such as:
Salary
Vacation and paid leave
Duties
Sick leave
Benefits
Insurance
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Breaking a Nanny Contract
Many families worry that a nanny contract will mean they could be stuck in a situation that is unsuitable. In other words, they aren't happy with their nanny, and they want out of the nanny contract. On the other hand, the same could hold true for a nanny. She may decide that her working conditions are also unsuitable, but she is afraid to break her nanny contract for fear of future reprisals and repercussions. Can a nanny contract be broken? The answer is yes.
While nanny contracts generally do protect the legal interests of both parties, they aren't usually as binding as some might believe. If the nanny contract was created by a nanny agency, then the agency should do its best to work with both the family and the nanny to correct the current situation. In some cases, this might mean that a new nanny is referred to the family, and in others, it might mean that a nanny is hired by another family. For both parties, however, there should be a notice given, preferably at least two weeks. This will allow both the employing family and the nanny to find a different arrangement that is more suitable.
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Reasons for a Nanny Contract
There are several reasons why a nanny contract should be drawn up. Nanny contracts can be drawn up by a lawyer or legal aid, or the employing family and the nanny can confer together before writing a mutually acceptable nanny contract.
Nanny contracts will allow the employing family to state their expectations regarding the employment of their nanny.
Nanny contracts will spell out the nanny's salary, hours, and benefits, as well as any other pertinent details that should be determined before the nanny is hired.
Nanny contracts will address the specific care of the children, particularly their activities, eating habits, health care, and entertainment.
Nanny contracts will address issues such as overtime, emergency needs, use of a car, and extra expenses.
Nanny contracts will provide some level of protection in response to voiding the contract, usually in the form of a termination or resignation notice that should be issued two weeks in advance.
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Leave of Absence and Severance Pay
Since a nanny is a household employee, there is a level of trust and intimacy that exists between a nanny and her employers that is not present within a normal employee/employer relationship. For this reason, nanny contracts often include stipulations regarding the termination of employment or notice given by the nanny. The contract can specify the length of notice that a nanny must give before leaving her position. This can be anywhere from two weeks up to one month. The reason for an extended period of notice is so the family can secure another childcare provider and prepare their child for the nanny's leaving. If the parents choose to terminate a nanny's employment than they should provide at least two weeks or a severance package equal to two weeks salary. This allows the nanny to secure employment without being put in a financial bind.
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Methods of Payments Disclosed in Contract
One of the most important aspects of the nanny contract is the outlining of a payment schedule. A nanny can be paid in two different ways, and each method has its advantages. A nanny on a salary pay schedule gets paid every month (or two weeks) a set paycheck, no matter how many hours she worked. There are normally a set number of hours that a nanny will work per week. A salaried nanny is paid even when she is given an afternoon off so her employers can spend some extra time with their children, or when she needs a sick day. Paying a nanny salary is a way for employers to simplify their accounting; however they are responsible for paying for hours that their nanny may not work. A nanny can also be paid at an hourly rate. At the end of the pay period, the nanny's employers will calculate the total hours worked and pay her for her time. Paying a nanny an hourly wage does create more paperwork for her employers, but it allows them to only pay for the hours their nanny actually works. Regardless of whether a nanny is paid by salary or by the hour, the rate for overtime hours should be established in the contract. Even if a nanny is a live in, she should not be expected to work above and beyond her set hours for the week unless there is some sort of compensation. Many parents choose to have a specific number of overtime hours worked into the nanny salary.
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Amendments to the Nanny Contract
Occasionally amendments or changes must be made to the nanny contract. At the start of the nanny's employment, the parents can choose whether or not the nanny can suggest or make changes to her own contract. It all depends on the level of trust that the parents' have with their nanny. Some common changes made to a nanny contract are a change in hours and a change in pay scale. The contract can stipulate a yearly or semi-annual review at which time the nanny may be given a raise. The family may adjust the hours that they need the nanny depending on changing work or school schedules. Also, if the employers are expecting an additional child, the contract will need to be renegotiated.