How to Write a Nanny Work Agreement

The written work agreement establishes the framework for the employment relationship that nanny and family are about to embark on. Insisting on a written work agreement is a best practice in nanny employment. Experts agree - a good nanny:family work agreement is an important foundation for the good relationship you hope to have with this person.

Instructions

Difficulty: Moderate

1. Keep in mind WHY you are doing this. Your nanny is your employee. She will have sole charge of your children in an unsupervised setting. Your family will depend on the nanny for her professional services, and the nanny contract or work agreement sets the professional tone of the relationship right from the begining and truly will avert future problems and misunderstandings.
2. Cover all the basics. What are the basics? Absolutely cover all hours and duties. Compensation for the base hours should be stated in hourly wage terms, with a specified weekly guarantee (this will become the rate for vacation time, sick time, etc.). Use the free Hourly Pay Rate Calculator at 4nannytaxes.com to translate a weekly salary into the appropriate hourly and overtime rates. Cover all benefits including paid holidays, employer contribution to medical insurance if offered, and sick/holiday/paid time off.
3. Details Count. You and your nanny will refer to this document whenver issues arise in the relationship. The time you take to spell out the details will generally avert misunderstanding due to different assumptions. Consider "child's bedding will be changed and laundered weekly" instead of "laundering of child's bedding." What about additional hours - either planned or unexpected? Nanny tardiness? You agreement should address this with both overtime compensation and payroll consequences for tardiness. Detail expense reimbursement, including any family parameters for discretionary spending by the nanny.
4. State Payroll Frequency and Tax Treatment. How frequently will the nanny be paid? What day of the week is payday? What taxes are your deducting? Are you deducting the nanny's income taxes or is she responsible for paying those directly? All of these items should be spelled out up front.
5. State the House Rules. These may include visitors, smoking, alcohol use, dietary restrictions, and security (locking the door, setting the alarm). This will be more detailed for the live in nanny. May the nanny have guests during working hours? After hours if she is a live in? Do you need to meet and pre-approve the guests? Remember, this is your private home and your children. What about play dates? If the play date is at another's home, does the nanny need to stay? What about trips to the local park, pool, library, or mall?
6. Policy for Sick, Personal and Vacation days. When nanny is sick, how much notice do you want on the call out? Two hours before shift start is a reasonable minimum. How much notice do you require for the scheduling of vacation and personal time? Are there vacation 'black out dates' when your family cannot accomodate a vacation? For example, if you are a CPA working in a tax practice, you may dis-allow nanny vacations in March and April.
7. Define Emergency Procedures. Which parent is the primary contact when the nanny is on duty? Do you have a family emergency plan? Make sure the nanny has an emergency contacts list that is kept up to date with all work and cell phone numbers, beeper numbers, the contact information for the children's doctor and dentist, insurance information, and hospital preference.
8. Define Automobile Use Policies. Will the nanny be driving your personal vehicle? Will she use it for transporting your children (to/from activities, pre-school, appointments, school, etc.)? For her personal use? Are there restrictions? Alternately, the nanny may be using her personal vehicle to transport your children. A statement about the mileage reimbursement rate should be included, as well as the reimbursement frequency (monthly is the norm). Most nannies expect the mileage reimbursement rate to be pegged to the IRS published rate. If tolls or parking charges are an issue, make sure you include these details.
9. Include a Confidentiality Agreement. The nanny's close relationship with your children and your family will make her privy to household information and details that you would prefer remain private. This can be information about a family member's health, finances, career or relationships. A confidentiality clause is a vital component of your work agreement.
10. Discuss Performance Reviews, Salary Changes, and Termination. The nanny is your employee. She is entitled to periodic performance appraisals to document her performance and professional goals. Regular salary reviews are important to keep your nanny happy and your turnover low. Termination is an inevitable part of any employment relationship. Define termination notice on both sides. Many families request 4 weeks notice from the nanny, and offer 4 weeks notice from the family OR pay in lieu of notice. Finding a replacement for your nanny may take time, and you will be glad you planned for this in advance.

Tips & Warnings

• Car seat and seat belt use must be addressed.
• Taking the time at the begining of the employment relationship to define all aspects of the relationship will engage the nanny in a conversation about your specific requirements and expectations.
• You avoid misunderstandings, assumptions, disappointment and conflict in the future when you write it down.