If I “only” employ a nanny, do I have to give her redundancy pay?

Yes! If you employ anyone, be it a receptionist, sales person or nanny means that you have responsibilities under employment law.

As is usual in law, ignorance is not a defence and will not protect you!

Once someone starts working for you, you will need to register as an employer with HMRC, get employers’ liability insurance and set up a PAYE system either yourself or with your accountant. Employees’ rights start from day one, whether you issue them with a contract or not.

So if the nanny has worked for you for more than two years, and you give her notice, then she is entitled to the same statutory redundancy pay, as any employee (currently max £380 per year’s service) as well as her notice period paid. The relationship does not “automatically” end when the children are in school, unless you have given her a fixed term contract.

Even if it is obvious that she will be leaving, i.e. because the children are going into full time education, she still has to be made redundant using the standard redundancy consultation process (call us on 0844 588 0301 to see what is appropriate for your situation).

If you don’t do this and just give the “normal” notice (see our section on notice periods), then your nanny, who was an intimate member of your family circle, could turn around and sue you for unfair dismissal (average award, according to Gibbons, £9000) after she has stopped working for you. So do it right!

Give Gap HR a call and we will walk you through all steps of the redundancy process, minimising your risk of a tribunal case. Call us on 0844 588 0301 now!