Do You Need a Contract for a Nanny?

Is a nanny contract a legal requirement?

Under the Employment Rights Act 1996, as amended from 6 April 2020, every UK employer must give an employee a written statement of the main terms of employment on or before their first day of work. When you recruit a nanny, you become their employer, meaning you will need to meet these obligations. Before the amendment, there was a grace period, but this has since been removed, which means the statement is now a genuine day-one obligation rather than something you can sort out later.

The written statement is the minimum document the law requires you to provide, and isn’t the same thing as a contract. The employment contract is broader: it can include written, verbal and implied terms, and it covers the whole working relationship. So a formal nanny contract is not itself a standalone legal requirement, but the written statement inside it is.

In practice, the simplest way to meet your legal duty and protect both sides is to fold the required statement into one clear written contract. That single document then does both jobs at once. You'll see plenty of generic templates online described as a sample contract, but a nanny's employment has its own quirks, so it's worth tailoring rather than copying. At Nannies Matter, we create substantial contracts that clearly define your nanny’s role, and make sure your professional relationship gets off to a great start.

Why a written contract protects you and your nanny

A written contract isn't there to make the relationship feel formal or transactional. It's there so that nobody has to rely on memory when something comes up. When the hours, the pay and the duties are all written down and agreed, there's far less room for the small misunderstandings that can sour an otherwise happy arrangement.

For you as the employer, the contract sets clear expectations and can lay out any house rules for the role. It also gives you something to refer back to if a question arises about holidays, notice or responsibilities. For your nanny, it confirms the job exactly as agreed and reassures her that her entitlements are recognised. Both parties know where they stand from day one, and the protection that a well-drafted contract provides is mutual.

It also sets a professional tone. Bringing a live-in nanny or a live-out nanny into your family is a significant step, and treating it as a proper job from the outset tends to lead to a longer, steadier relationship.

What to include in a nanny contract

A good contract covers the everyday realities of the role so that nothing important is left to chance. Below are the key areas that need to be covered.

Duties and light housekeeping

A nanny's role is childcare-focused, so most of the contract here is about caring for your children, their routine, meals, school runs and activities. If you have agreed some light housekeeping, such as the children's laundry or tidying their rooms, write it down explicitly and keep it reasonable so duties don't quietly expand over time. If you want broader household help, a nanny housekeeper is a different role worth considering.

It's also sensible to include a short confidentiality clause. A nanny sees a great deal of your family's private life, so a brief line confirming that household matters stay private reassures both sides and is a normal part of a professional nanny contract.

Hours, pay rate and notice period

Set out the working hours, which days they fall on, and note whether they can vary. State the pay rate clearly, along with the payment schedule showing how often and when your nanny is paid. The notice period each side must give should be in writing too, often shorter during probation and longer once the role is established. The start date and the exact notice period are for you and your nanny to agree, but both must be recorded.

Holidays and public holidays

Your nanny is entitled to paid holiday, and this must be stated in the contract. The statutory minimum holiday entitlement is 5.6 weeks per year, pro rata for part-time, capped at 28 days. Be clear about whether public holidays are counted within that entitlement or given on top, because bank holidays are not automatically extra paid leave.

Sick pay and other statutory benefits

The contract should state the sick leave and sick pay arrangements, or where to find them. Statutory Sick Pay applies where your nanny is eligible, and following the changes in April 2026 it's now payable from the first qualifying day of sickness. Statutory maternity pay may also apply if she meets the qualifying conditions.

If you'd like to read more on this, our pieces on nanny sick pay and maternity leave and paid holidays for nannies go into more detail. Setting these out properly is simply part of being a fair, lawful employer.

Use of a car

If your nanny will drive, the contract should cover it. If she uses her own car for work, she'll usually need business-class car insurance covering that use, with mileage reimbursed at an agreed rate. If she drives the family car, you arrange insurance that covers her, and the two of you agree who handles any excess. Employer's liability insurance is a separate consideration that's worth checking with your insurer. Either way, put the car arrangements in writing so there's no doubt later.

Nanny pay, tax and payroll: what the employment contract should set out

When you employ a nanny, you become her employer in the eyes of HMRC, which means you take on some payroll responsibilities. This is the part first-time employers worry about most, so it's worth knowing it is very manageable, particularly with agency support. The cost of getting payroll wrong, including penalties, back payments and interest, is far greater than the cost of running it correctly from the start, which is why most families hand the heavy lifting to a specialist. At Nannies Matter, we can support you with the admin and payroll side throughout your time employing a nanny.

Operating PAYE and income tax

As the employer, you're responsible for operating PAYE: registering with HMRC, deducting income tax and National Insurance from your nanny's pay, and providing payslips on each payday. You'll usually need to register before the first payday. The employment contract should make clear that you'll run PAYE and pay your nanny through the proper channels. For a more in-depth walkthrough, our guide to nanny tax and payroll is a useful next read.

Always agree gross pay, not net

If you agree on a net figure, any change to tax or National Insurance becomes your problem, and "what we agreed" gets murky. Agreeing gross keeps the cost predictable for you. It's also worth knowing that HMRC almost always treats a nanny as an employee rather than self-employed, because you control the hours, duties and place of work. The idea that a nanny can simply sort her own tax is a myth best avoided.

Probationary periods, performance reviews and staying on the same page

A short probationary period at the start of a nanny's employment gives both sides room to check the fit, with a shorter notice period during that time. It's standard practice and nothing to feel awkward about. Writing it into the contract just makes the arrangement clear.

Beyond probation, gentle, regular performance reviews keep everyone on the same page. A relaxed catch-up every six months is a chance to talk about what's working, raise anything small before it grows, and adjust as your children's needs change. Good preparation helps from the very beginning, which is why families often find our nanny interview questions and first-day checklist useful when setting expectations early. Keeping the relationship open and honest is what turns a good hire into a long-term one.

Nannies Matter supports you with nanny contracts

When you hire a nanny through us, we start by establishing your exact needs: the hours you want covered, the duties your family requires, and the qualifications and experience of the professional nanny who'll fit your household. That clarity makes the employment contract straightforward to put together.

We've supported families across the Home Counties and West London for years through our recruitment process, which is director-led and face-to-face rather than rushed and remote. We use that experience and our network to help put comprehensive, fair agreements in place that you and your chosen nanny both sign and understand. You stay focused on finding the right person for your children, while we make sure the paperwork around the role is sound. Where disputes or genuinely unusual issues arise, we'll always suggest you seek legal advice from a lawyer or employment specialist rather than guess.

Get in touch

If you're preparing to hire a nanny in Surrey or anywhere across the Home Counties and you'd like help getting the contract right, we'd be glad to talk it through. Many parents find the employment side of things far clearer once they've spoken to us. We'll establish what your family needs and guide you through putting a clear, fair agreement in place with your chosen nanny.

Call us on 07736 337065 or contact us to start the conversation. We'll talk through your family's situation, help you understand exactly what your contract needs to cover, and make the employment side feel a great deal less daunting.