By hiring a nanny or a house manager, you will become an employer. And as an employer, writing a nanny contract is a very important step of the hiring process. A contract is essential to set up rules from the very beginning and to avoid misunderstanding.
Nannies or House Manager can either be engaged as employees or independent contractors. If you are hiring the home helper as an employee, you will be responsible for payment directly to the employee and will be responsible for their tax, super and insurance. You can get some help and directions on the Miscellaneous Award 2010.
What should your nanny contract cover?
When writing the nanny contract, you should cover anything related to the nanny’s job. This is the opportunity to be as detailed as possible:
Childcare duties & work hours:
You need to clearly outline what you expect from the nanny/house manager. It is important to mention all the tasks required so the nanny/house manager knows what she will have to do during the shift. Also, do not forget to mention the timetable and the days of work.
Wages, overtime rates, and pay schedule:
Be sure to define the salary, including gross hourly wages (amount paid before taxes are withdrawn), net wages (actual paycheck amount), taxes and superannuation. In addition, write what the overtime pay policy is and establish a payday schedule. Also mention how the nanny will be compensated when the family doesn’t need her for a day or more. Nannies expect a guaranteed weekly pay rate every week, whether the family goes away or not.
Benefits (including paid holidays, health insurance, and vacation):
Benefits are negotiable with your employee. It is important that you refer to Fair Work website to ensure your obligations are being respected. There are minimum leave entitlements (sick leave and paid holidays) for full-time and part-time employees which vary depending on states. In QLD all full-time employees are entitled to a minimum of 20 days annual leave or pro-rata for the hours/days worked. Part-time employees receive the same entitlement on a pro-rata basis. Sick leave entitlement is 8 days sick leave in the first year or pro-rata for the hours/days worked. You can refer to the P.A.C.T Calculator to find out more.
Including a termination clause into the nanny/house manager contract will help keep both parties protected in case one of the parties would like to end the contract. If the nanny/house manager quits, be sure that there is a clause mentioning that the employee must provide notice, or if you wish to have the ability to terminate the contract at any time, be sure to include a clause that will allow you to do that without negative repercussions.
We understand that it can be confusing to write a nanny contract. Our team is experienced and can help you with this process. Contact us today for advice!