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Finding a nanny that you and your family feel comfortable with is hard enough, but how would you feel if your neighbor or best friend stole her? Nannies have to live, and if a better offer comes along, there's nothing stopping them from moving on.
That's where nanny contracts can help. A nanny contract won't give you a lifetime commitment, but it could mean the difference between having enough notice to find a new nanny and leaving you high and dry. Contracts are a great way to boost communication between you and your nanny, allowing for periodic “check-ins”. You can build into the contract a time to get together again and discuss any pay increases, etc. That alone could make a huge difference in how long you're able to hold on to your nanny.
The nanny contract can include as much, or as few, details you want. With nanny contracts, more is better. They should at least include rate of pay, job expectations, hours of work, any overtime expectations and compensation for that, and whether the nanny will have use of the family car. By building a follow up clause in the contract, you're giving the nanny the message that she's important to you. Knowing that there's an opportunity coming up to renegotiate salary and benefits could mean the difference between keeping her, or having her take another job offer.