A common question when families hire a caregiver is: do nannies get paid overtime? The quick answer: yes, nannies are legally entitled to paid overtime. But whether nannies are actually being paid overtime at all or being paid overtime correctly is another matter entirely.
Working overtime is a difficult task for anyone, but especially for nannies with families of their own. Whether you’re hiring a nanny or you are a professional nanny, here’s what you need to know about overtime pay, and how to ensure it’s by the books.
Why do nannies have to be paid overtime?
According to the Fair Work Ombudsman, nannies and au pairs are usually engaged as employees, meaning they can’t be considered independent contractors (however, you may wish to seek independent advice about your individual situation). Nannies and au pairs engaged as employees in Australia are covered by the Miscellaneous Award. Under this award, employees are entitled to paid overtime or time off in lieu when they work in excess of standard hours, regardless of whether they work full-time or part-time.
How much overtime should nannies be paid?
Under the Miscellaneous Award, if a full-time or casual nanny works more than an average of 38 hours per week, or a part-time nanny works in excess of the agreed number of hours per week, this is considered overtime and they must be remunerated at a rate of 150% of the relevant minimum rate for the first three hours of overtime worked. Any overtime that exceeds three hours must be remunerated at a rate of 200% of the relevant minimum rate. Please note: the award also specifies that an employer and an employee may agree in writing to compensate for overtime worked with time off in lieu instead of paid overtime.
What about a live-in nanny?
For live-in nannies, the Miscellaneous Award also applies.
How should you keep track of overtime?
For any full-time nanny who regularly works more than 38 hours a week, set up a system to keep track of hours—so both the employer and childcare provider know how much the nanny should be paid. You can use a time-tracking app or set up a shared spreadsheet using Google Drive to keep the nanny’s time on the clock organised. Then, come pay day, add up the extra hours and the appropriate rate.