So you’ve found the perfect nanny! Now what? The next step in the hiring process is to create an official nanny contract. Nanny contracts are necessary because they provide clear expectations for both parties and ensure a smooth and professional working relationship. They also help to prevent misunderstandings and provide essential communication. While many families may already have the outline of an agreement in place, most career nannies will likely also have their own checklist of requirements; let’s go over some of the basics! Please note that we strongly suggest you familiarize yourself with local domestic labor laws to ensure you are compliant.
Key Elements to Include in Your Nanny Contract
Check out some of the main points that should be addressed in the agreement:
Let’s establish the foundation– we always recommend you include the date, names of both parties, any work/ home addresses, and the start date you may have in mind. Additionally, if this role reports to someone other than the guardians/principals, include that information and the person’s title (i.e., “Nanny will report directly to the House Manager, John Smith, for XYZ.”)
Trial Periods and Performance Reviews
Will you have a trial/probationary period? If so, note the duration. We recommend an initial performance review at the end of this time, as well as subsequent reviews (minimum) at each year mark. This is a great time to do a performance review and assess any updates the family or nanny may want to make to the agreement.
Understanding Employment Classification
Employment classification: What do your local laws say? For example, in New York State, being a nanny is a non-exempt position, meaning nannies qualify for overtime when they work more than 40 hours a week (or 44 when living in). An example of how we may word this would be: “As a full-time employee, you will be expected to work 40 hours per week. This is a non-exempt position, meaning that you are eligible for extra pay when working more than 40 hours a week (44 when live-in in NYS). Your employment is considered an “at-will” relationship that has no specific duration. This employment relationship can be terminated by either party with or without cause or advance notice.”
Defining Salary, Schedule, and Hours
Next, let’s cover salary and schedule! As career professionals, nannies rely on being paid for their guaranteed hours, regardless of whether or not a family decides to use them for a certain period. Just like with a corporate job, guaranteed hours are an industry standard – company employees still expect to be paid if their office is closed for a day, but they are ready, willing, and able to work. You are paying a nanny to maintain their availability during their guaranteed hours and schedule, and if you choose not to use them during these hours, that is up to you. Define your family’s scheduling needs: what days and hours will the nanny be expected to provide coverage? Does your role require flexibility, overnights, or travel? Be explicit with your needs. Make sure you are compliant by clearly outlining expectations for any additional coverage that may fall outside the scope of the nanny’s typical work schedule: What is their overtime rate? What is their travel and/or overnight rate? Will the nanny be expected to work any holidays? If so, we recommend providing extra compensation, ideally time and a half or double time for those days.
Employment Benefits: PTO, Insurance, and Bonuses
Another important topic to cover is employment benefits. Clearly outline paid time off (PTO), holidays, sick/personal leave, medical insurance (or other more corporate benefits like 401K), transportation reimbursement, etc. We also recommend you cover raises and bonuses, even if you prefer to list them as “discretionary,” as well as termination and severance.
Here is a past blog that helps to cover the topic of PTO and holidays when employing a nanny:
https://nannyauthority.com/how-to-handle-nanny-holidays-and-paid-time-off/
Work-Related Expenses and Reimbursements
Work-related expenses. While it may seem like a no-brainer to some, it is essential to clearly outline how you expect the nanny to pay for anything related to their job (i.e., “Nanny will never be expected to use their own money and will be provided with a household credit card for child-related expenses and will be asked to check with parents before purchases and save all receipts.”). If you plan to travel with your nanny, be clear: you will cover all expenses related to work travel. Additionally, is your nanny expected to bring their lunch, or are meals provided when working?
Primary Duties and Additional Certifications
Cover the primary duties and expectations for the role, as well as any certifications, courses, or reading the nanny will be expected to complete. For example, will the nanny need to renew their CPR and First Aid Certification, and will the family cover the cost?
Establishing Privacy and Non-Disclosure Terms
Duty of non-disclosure. We recommend you cover at least the basics of what your family expects in terms of privacy and what can be shared outside of the home.
Finalizing the Contract
Be sure to leave a space for date and signature upon acceptance for both parties.
Again, many nannies may already have an outline in mind for their job requirements, so we always recommend seeing this as a valuable process for both parties to contribute. Having clear guidelines for the expectations of the position is the best way to ensure a healthy working relationship for all!
Are you still looking for your perfect nanny? Contact us at Nanny Authority today! Email info@nannyauthority.com, call (973) 466-2669, or visit www.nannyauthority.com.