Employers' Legal Obligations
Most frequent questions and answers
As an employer of a nanny or any full-time Household staff, you are faced with legal duties. Employers in the U.K. & worldwide must also be aware of the ever-changing employment laws. We know that these legal responsibilities can easily be overwhelming.
However, to make life easier for employers, we can recommend experts who can act on your behalf and offer you an exhaustive hassle-free service regarding employers’ obligations.
Employers that are not based in the U.K. may be subject to different legal obligations. For any futher information, please discuss with your legal advisors.
As previously mentioned, employers of nannies must meet a range of legal obligations. If you fail to meet your legal duties, you will incur heavy penalties. As an employer, you must register with HM Revenue & Customs. In the nanny industry, nannies’ wages are quoted as net. Thus, by law, employers must pay tax & NIC (National Insurance Contributions) on top of the nanny’s net salary.
For your peace of mind with meeting your legal obligations and in order to take this burden off your shoulders, we can put you in touch with chartered accountants & tax advisors such as “Taxing Nannies” who can offer you a comprehensive service in this matter. They can indeed carry out the following on your behalf:
- put a contract of employment in place between your nanny and you as an employer, specifying all your requirements
- deal with HM Revenue & Customs
- offer advice regarding nanny tax and nanny payroll
- open a PAYE scheme for your nanny as a nanny cannot be self-employed
- calculate tax & national insurance contributions
- provide information about workplace pension
- provide regular payslips to your nanny
- file employer’s end-of-year tax returns and forms
Educated Households recommmend the services of:
- Taxing Nannies: www.taxingnannies.co.uk – Specialist nanny payroll service by chartered accountant(s) & chartered tax advisor(s).
Educated Households also recommend the services of:
- Nanny Tax: https://www.nannytax.co.uk/ – Leading payroll support service for parents employing nannies.
By law, a nanny cannot be self-employed. It is a legal obligation for employers to provide their nannies with regular payslips. Your nannies and Household staff are childcare professionals. The employer / household staff relationship is based on mutual respect. Your nannies and household staff expect to be paid on time as they also have their own personal commitments.
Under the current legislation, employers must provide their nannies with a contract of employment within eight weeks of starting employment for employers based in the U.K. A contract of employment is a legal obligation for employers of nannies. We can only reiterate the necessity for employers to provide / consider a contract, even before your nanny and any Household staff come to work for you, underlining the nanny’s duties and how child discipline issues should be dealt with. Please, call one of our Consultants if you need help with providing a contract to your nanny.
Your contract of employment should detail the duties and reponsibilities of your nanny & household staff.
Due to the confidential matters related to your Household, we strongly advise employers of nannies & any Household staff to consider a confidentiality clause / NDA (Non-Disclosure Agreement) whilst getting the contract of employment drawn up.
Overseas-based employers of nannies & Household staff should also consider putting a contract of employment in place & a confidentiality clause / DNA (Non-Disclosure Agreement). Legal obligations may differ for employers not based in the U.K. Please, discuss this with your legal advisors.
It is a legal obligation for employers of nannies to take out Employers’ Public Liability Insurance. This protects employers in an event of any accidents your nanny may be related to while working for you, as your nanny would be entitled to compensation. Please, check with your insurance company.