So, you’ve interviewed a bunch of candidates and have finally found the perfect nanny. Now what? Before jumping in and having your nanny start caring for your kids, it’s important to make sure you’re clearly aligned on the expectations surrounding this job. A formal contractual agreement, or nanny contract, can help with that and, ultimately, protect your family and the caregiver.
Having a contract helps you to steer clear of any kinds of miscommunication, and it eliminates any murky, grey areas. Families want to make sure the nanny is treating the job like a professional career, just as they would at a desk job in an office. By having a contract in place, you and the nanny are stating what you’ve agreed upon, and having it in writing helps solidify this.
Indeed, a contract is an indispensable tool to ensure everyone is on the same page and remains that way for the duration of employment. Here’s why you should consider drafting a nanny contract, what you should include in it and how to make it happen.
Why a nanny contract is a must
Sure, a contract may feel weighty and formal, and the idea of having to work through the details of one with someone you don’t know very well yet can seem awkward. But putting a contract in place upfront will ensure that you are on the same page about important topics—it’s much worse to tackle them when problems arise—and will end up protecting both you as the employer and the nanny as your employee. In fact, many nanny agencies require the use of a contract.
The contract remains in place throughout the nanny’s time with your family, which means it will set clear expectations at the start and can also help if the nanny isn’t holding up their end of the agreement. For example, if the nanny is supposed to take the kids to gymnastics on Tuesdays but fails to, or if they were supposed to go on the family holiday and refuse to go, the contract gives the family an easy way to address the issue and point out that they are not fulfilling the terms of the contract. Therefore, the contract gives families a basis for getting their nanny to do the job they were hired to do and evaluate them for it. It serves as a forum for discussions with them, and if the nanny isn’t meeting the expectations that are set out in the contract, this gives the family more solid grounds for dismissal.
Having all the rules, expectations and terms of employment in a contract helps both sides if there is ever a dispute over benefits, pay or other work conditions.
Find a sample nanny contract online or meet with a lawyer
One way to quickly get a nanny contract is to download a free sample contract from Care.com Australia. There are also various pre-made nanny contracts online.
If you want a contract completely customised for your family, you can create your own; you just need to have you and your nanny sign and date it. However, if you don’t have a legal background, you may want to pay to have a lawyer review it to ensure you’re not leaving out anything important. Another option is to pay a local civil and/or contracts lawyer to draw up a tailor-made contract for you. Some lawyers charge flat fees for creating these types of contracts, while others charge by the hour, and the cost ranges depending on the lawyer’s level of experience.
What to include in a nanny contract
Here are some of the key items that should be included in your nanny contract:
1. Job duties: childcare, household work and pet care
Sure, you want your nanny to take care of your child, but will their duties extend to some household work, too? Be sure to outline the roles and responsibilities expected of your nanny, and be very specific. Specify whether the nanny’s duties include things like cooking, cleaning or care of pets. While you may assume that the nanny is going to cook dinner every night, they nanny may have very different thoughts on what the scope of their role includes. That’s why it’s important to discuss all of the tasks they’re expected—and being paid—to do and put it in writing.
Pro tip: Avoid vague terms like “light housekeeping” and instead itemise duties so that it is very clear.
2. Hours and pay: Overtime, taxes and schedule of payment
Your contract should outline the schedule the nanny is being asked to work and how much they will be compensated. It should clearly state the hourly rate and what the gross salary comes to, along with overtime rates.
If you’re not sure what’s reasonable for pay, consult the Fair Work Ombudsman. Nannies are usually covered by the Miscellaneous Award, which stipulates a minimum hourly rate of $21.38 for full-time employees.
The contract should also state when and how the nanny will be paid, and who is responsible for withholding taxes. If you plan to give your nanny any bonuses or pay rises, the terms and conditions of these should also be covered in the contract.
3. Time off: Annual leave, sick days and backup care
Your contract should clearly state how much sick and annual leave the nanny gets, as well whether they will be required to work public holidays, and if so, how they will be compensated for this. Leave entitlements are laid out in the Miscellaneous Award. If you would like clarity on any uncertainties, it’s always a good idea to get in touch with the Fair Work Ombudsman directly.
When it comes to paid leave, it’s important to indicate in the contract if the dates are up to the nanny or the family. You may wish for you nanny to go on leave the same time as you’re on holiday to reduce the amount of time you have to find an alternative caregiver.
The contract should also clearly state if your nanny is expected or allowed to go on family holidays with you, and if so, what the pay rate is during that time.
Lastly, your contract should cover how much paid sick leave your nanny will get. It’s often wise to include details on what should happen if the nanny is too sick to come in for work but has used up all their paid sick days—and any emergency backup care that might be available. For instance, you may want your nanny to be responsible for supplying a backup caregiver if they are unable to make it to work.
4. Transportation details
Transportation is an important safety issue that should be covered in your contract. It should outline if the nanny is allowed to transport your child regularly, and if not, if they are permitted to transport your child in an emergency. If driving is permitted, it should also say if the nanny will use their own car or your family car, and if there is a child safety seat provided and installed by your family. It can also include whether the nanny will be reimbursed for petrol and/or mileage.
5. Performance reviews
Some nannies and families like to set official milestones for reviews. This could be to simply check in and see how things are going or to determine if the nanny is eligible for a pay rise. Some nannies like to sit down once a month for a review while others may want an initial 30-day check-in and then an official review after six months. Talk to your nanny and find out what feels best for them and your family.
6. Termination
It’s wise to list your official grounds for termination in the contract, so you and the nanny are aware of what constitutes grounds for dismissal. This could include theft, substance abuse or continuously showing up late.
Your contract should also include how much notice is required if either you or the nanny decide it’s time to part ways. If you are the one letting go of the nanny, you will need to observe the minimum notice periods. Likewise, the nanny will need to follow the notice periods for their respective award or as otherwise agreed in their contract. If you’re letting go of the nanny for reasons unrelated to their performance, you’ll need to be mindful of unfair dismissal and the nanny’s right. For more information, please consult a lawyer or the Fair Work Ombudsman.
7. Amendment process
As your kids grow and their needs change, it’s likely you’ll want to add to or amend the contract. Be sure to include a provision that stipulated you reserve the right to make changes to the contract in line with your child’s changing needs.
8. General house rules and guidelines
There are several important items to clarify that are very relevant to nannying but aren’t necessary applicable to an employment contract in other fields. For example, will you be expecting the nanny to swim with the kids? Are they required to not wear perfume? Do you require them to have CPR certification and flu shots or COVID-19 jabs? Do they need to keep the child on a special diet?
You may want to also include information about whether it’s appropriate for the children to be disciplined, and if so, what that may entail.
How detailed you get about childcare in the contract is totally up to you as the employer; some parents choose to be so specific that they say how frequently the children should eat and when their nappies should be changed, while others don’t include much detail at all. It really depends on how experienced the nanny is, how experienced your family is with nannies and what feels right to both of you.
There’s nothing in the rule book that says you can’t add things to the contract that maybe aren’t as formal, like information on medications they take or that they need be taken to gymnastics on certain days, just to give the nanny some direction, and again, just to have things in writing so everybody is on the same page.
You may also want to include details about whether your nanny is allowed to post pictures of your child on social media and if you will be using a nanny cam to monitor them.
While you may feel reluctant to ask your new nanny to use a written contract, keep in mind that it can help you and your employee start off on the same page and feel protected if anything goes amiss later.
