What to Include in a Nanny Contract

Finding a hiring a caregiver can be a challenging process, and if you're opting to hire a nanny, you might be wondering if a so-called nanny contract is really necessary.

Experts say that establishing clear ground rules during the hiring process can help prevent any issues from developing later on. A contract also helps ensure everyone is on the same page about salary, time off and other parts of the job description.

This is where a nanny contract can be very useful: not only do these agreements protect you as the employer, but they also protect your nanny as the employee.

What is a nanny contract?

Like any basic contract, an employment agreement for a caregiver such as nanny is meant to make both parties (the employer and the employee) aware of and accountable for each and every expectation that the job entails.

As with other employment agreements, the terms of the employment contract set out the scope and house rules.

Who creates a nanny contract?

While you don't necessarily need to hire a lawyer to help you write a nanny contract, it may be worth seeking counsel of someone in the legal sphere to provide professional insight. This can be especially beneficial for the employee, since it can help a nanny protect their rights and be informed of everything they are agreeing to by signing the contract.

Also helpful? An attorney can research and review any specific state employment laws you may need to consider.

What to include in your nanny contract

There are a few essential topics you'll want to be sure to cover in a nanny contract. In the (unlikely!) event of litigation, a contract can provide important evidence to show that you complied with employment laws.

You want the contract to cover any and all potential tasks, roles and responsibilities that your nanny may have to do, as well as any particular circumstances that might come up during their employment and the protocol that should be followed if they do. For example, how many vacation days will they get each year? What about sick days? And what vehicle should they use if they have to drive your child to a doctor's appointment during work hours? 

Here are some important categories to include in a nanny contract:

Salary

First and foremost, compensation should be included in any nanny contract you create, as well as the exact number of children being cared for and how much they'll be paid for overtime.

Most nannies receive a guaranteed weekly payment or salary, and this amount can vary depending on the number of children in their care, the job responsibilities and their own personal rate.

In addition to salary, you should also note whether your nanny will be eligible for a bonus, as well as the terms for future raises.

Benefits

It's also important to include provisions setting forth any benefits that will be provided to your nanny, particularly if they involve more than what is required by state and federal law. For example, many states have sick leave requirements that are more generous than others, and many municipalities have sick leave requirements more generous than those established by the state.

If your nanny is a full-time employee, carefully outline the sick days, holidays, personal days and paid vacation time they will receive each year. This not only ensures that your nanny has enough personal time (they have their own life, after all!), but also gives parents the chance to plan for back-up child care well in advance.

If you are offering your nanny medical insurance, you might consider hiring an official insurance agent to guide you through the process. An insurance agent can suggest options that are fair, reasonably priced and inclusive. By including these benefits within the nanny contract, both parties are in legal compliance with the requirements.

Job responsibilities

While you might think the job responsibilities of a nanny — caring for your children — are obvious, a full description of what is expected is necessary and helpful.

This creates a smoother working relationship, but also provides protection for the employer with regard to liability — for example, if the nanny engages in conduct that is clearly outside of the scope of employment, and either is injured or injures another party, you as the employer have a basis for arguing that you're not liable for those actions.

Use of household equipment

If you plan on allowing your nanny to use household items such as your car, computer, or washer and dryer, it should warrant its own section in the contract.

In this section, you should outline the exact expectations for the privilege of using these items. To go one step further, you could check with your insurance company to see if there is anything you can do to protect your property more fully.

Non-disclosure agreement (NDA)

Even non-celebrities might choose to include NDAs as part of their nanny contract, experts say — and this section can be enforced even when the nanny is no longer employed. An NDA is a confidentiality agreement that legally protects the parents and family from the nanny sharing any private information to third parties.

This clause might include the expectations on taking and posting photos of the children, documents or conversations.

Termination clause

You might also include a termination clause detailing when the contract ends. This doesn’t have to translate to when your nanny's employment ends — it can simply signal the need for a new contract to be drafted should circumstances change.

The contract should also spell out any reasons for terminating the contract, such as with an "at will" clause that allows for the nanny to be terminated for any reason.

Finally, while a “contract” can sound serious and unnecessary, remember that its purpose is to protect everyone involved, both your family as well as your future nanny. Chances are, you’ll never need to actually use this employee agreement for any negative reason, but hopefully it will serve as a protection tool should an unexpected disagreement arise.