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Whether you are hiring a nanny through an agency or on your own, a contract between yourself and the nanny is essential. As the employers of a nanny, it is in your best interest to develop a contract. If you hire a nanny through an agency, you will be required to sign the contract provided by the agency. The contract establishes rules for the nanny while she is living in your house (or working in your house) and outlines the duties that she will complete. It can also include a description of the nannies perks and benefits, such as time off, sick days, car privileges, gas expenses and work hours. The contract will also include the pay rate. Establishing a contract up front with your nanny will avoid any miscommunication at a later date about your nanny's duties and responsibilities. Many parents choose to hire a nanny without using a nanny agency. They may follow the referral of someone else and handle the hiring by themselves. In these cases it is advisable to create a contract for your nanny. When you are creating your own nanny contract, keep in mind that there are several areas of your nanny's job that you need to cover. The process of developing your own contract can seem overwhelming but there are many online resources that can guide you through the steps and remind you of sections that you need to cover.