The national minimum wage effects every nanny in the UK apart from those who live with the family household and are not supplied with separate accommodation.

The current NMW is:

£3.30 per hour (gross) for employees aged 16-17
£4.45 per hour (gross) for employees aged 18-21
£5.35 per hour (gross) for employees aged 22 and over
It is a criminal offense for an employer to pay below the NMW, carrying a fine on conviction of up to £5000.

Working Time Regulations

The European Working Time Directive grants all employees of the UK the following statutory rights:

A minimum of four weeks paid holiday per year
Rest breaks

Maternity Pay

Our experience tells us that it will be unlikely your nanny will become pregnant whilst working for you and thus go on Maternity Leave however if she does then we can administer the payroll implications. If your nanny has been employed by you for 26 weeks or more when she leaves for her Maternity Period she is entitled to Statutory Maternity Pay (SMP).

The 2006-2007 Rates are:

SMP for payments due to be paid for pay weeks beginning on, or after, 4 April 2004 are:

First 6 weeks of payment

The earnings-related rate, which is 90% of the employee's average weekly earnings

Remaining weeks

The lesser of the standard rate, which is £108.85 a week, or the earnings-related rate

Small Employers’ Relief

SMP is refundable to employers at 92% of the gross amount payable. Small Employers however receive 104.5% back which is the Inland Revenues way of contributing towards your costs of administrating the payment.

Sickness

If your nanny is sick for a period of 4 consecutive days or more then Statutory Sick Pay (SSP) will be payable regardless of the amount of time she has worked for you. You can pay over and above this amount if you wish however this will be at the employers discretion and should follow the terms of any contract you have previously prepared.

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