Source :
http://www.careforkids.com.au/articlesv2/article.asp?id=40
The CareforKids.com.au team receive many enquiries from parents regarding their obligations for employing a Nanny.
The guide below offers information on your key responsibilities and includes a
sample employment contract and a
Nanny/Parent Diary which you may find helpful for keeping the lines of communication open.
A Note About CostPeople who use nannies are not automatically eligible to receive the
Child Care Rebate (CCR) or the
Child Care Benefit (CCB) the two government payments available to help families manage the cost of child care.
To
be eligible to receive both the CCR and the CCB you must meet certain
eligibility requirements and use approved care such as a long day care
centre or a family day care service.
The other type of care is
registered care which can be provided by preschools, kindergartens,
outside school hours care services and in some instances nannies.
Registered care providers are not considered CCR approved providers by
the govenment as they choose not to, or don't meet the minimum operating
hours or participate in the government's National Quality Framework.
However,
families who use registered care may, in some instances, be eligible to
receive the CCB as long as they meet certain eligibility requirements.
In order to receive CCB your nanny must apply to the Department of Human Services to become a registered provider.
To become a registered child care provider a nanny needs to:
- apply to the Department of Human Services using a Registered Child Care Provider Application form
- be
18 or have a recognised qualification that makes them eligible for
approval as a registered child carer. This includes evidence of a
recognised qualification such as; nanny, child care or home based care
certificate
- have a tax file number
- meet and maintain state/territory licensing requirements
- meet any requirements set by the Minister for Early Childhood and Child Care.
To receive the CCB you will need to take your nanny's child care receipts to the Department of Human Service and complete the
Claim for Child Care Benefit for Registered Care form. Your nanny can not claim the CCB on your behalf. The governemt will pay the CCB straight into your bank account.
Eligibility Reqiurements for Child Care BenefitFamilies
who satisfy eligibility requirements for Child Care Benefit may receive
payments if they use registered child care, such as a preschool,
registered nanny or kindergarten.
To be eligible for Child Care Benefit for registered child care you need to meet these requirements:
1. Eligibility - you or your partner (if you have one) meet residency requirements or have an exemption.
2. Immunisation - Children under the age of 7 must meet the Australian Government's immunisation reqiurements or have an exemption.
3. Responsibility for child care payments - You or your partner (f you have one) must have paid your child care costs..
4. Work, training, study test
- You (and your partner, if you have one) must pass the work, training,
study test, or have an exemption. For registered child care, you only
have to participate in work related commitments at some time during a
week or have an exemption. No minimum number of hours is required.
The
Work, training, study test looks at whether you and your partner need
child care for a work-related commitment. A work-related commitment is
one or more of the following activities:
- paid work
- self-employment
- setting up a business
- looking for work, study or training
- voluntary work to improve your work skills.
If
you meet these requirements, you may be eligible for the registered
care rate of a maximum of 50 hours of Child Care Benefit per child, per
week. Your income does not affect the amount of Child Care Benefit you
receive for registered care.
Hiring a nannyWe
recommend that you take a business approach to the hiring of a nanny,
at the core of which is establishing a contract of employment. Such an
agreement should limit misunderstandings regarding employment
conditions, making sure that all parties are on the same page now and in
the future. Areas covered in the employment contract can include
salary, benefits, hours of work, main duties and responsibilities,
sickness and holiday entitlements, notice period and performance
reviews.
Salary
- Set down the agreed salary including $___ pay per week/month/hour
- What is the pay period and when will your nanny be paid?
- What is the method of payment for example cheque, cash or into a nominated bank account?
- What is the overtime rate that will apply?
Hours of Work
- Set out the expected hours of work. Days and times for example Monday to Thursday 7:30am to 6:00pm
- Agree
on Public holiday entitlements. If the nanny is expected to work on
public holiday's agree on the rate of pay or whether it is time off in
lieu
Reference & Background ChecksWe
strongly recommend you conduct a background check on any prospecitve
nanny to ensure he/she is suitable to provide care for your child.
For further information please see our article
Working with children checks which outlines the various legal requirements and resources available to you in each state and territory.
The
decision and responsibility of hiring any carer rests with you. Be sure
you have the facts regarding previous employment, criminal records,
driving records, immigration and visa status so that you can make the
most informed decision possible.
Duties / Parenting PhilosophyEnsure
you are specific about the nanny's responsibilities. Provide clear
information about routines, including nap and feeding times, weekly
activities and so on.
Include plenty of information about your
parenting philosophy, including information on disciplinary measures, TV
time, sleeping methods, nutrition, hygiene and safety. Spelling it out
beforehand will minimise the potential for misunderstandings and
disagreements down the track. Ensure you are available to discuss any
changes with your nanny as they come up
Leave Entitlements
- Determine the Annual leave entitlement. All
full time employees are entitled to a minimum of 20 days annual leave
or pro-rata for the hours/days worked. Part time employees receive the
same entitlement on a pro-rata basis
- The standard sick leave entitlement is eight days sick leave in the first year or pro-rata for the hours/days worked
- Set
down notification times for when the nanny is to contact you by if they
are sick and conversely set down a procedure in the event of you being
delayed
Income TaxThe contract of employment is one of an employer and employee. Register with the ATO to allow for income tax deductions.
For further information visit
ato.gov.au or call the ATO on 132 478
SuperannuationIf
the nanny works for more than 30 hours a week they are entitled to
superannuation. This is currently 9% of the employee's gross wage so
take this into account. For more information visit the
ATO or contact the ATO's Superannuation Hotline 131 020.
Payroll ServicesIf
you are a little unsure about how payroll works, consider a payroll
service to assist you in paying your nanny's salary. There are many
available in the market here are a few you may wish to consider
Easypayroll.com.au or
Epayroll.com.auDomestic Work Cover InsuranceInsurance
to cover your nanny in the event of an accident is a further
consideration. Legislation on insurance requirements vary between the
different states and territories.
For information on the insurance requirements in your state or territory click on the links below:
New South WalesQueenslandSouth AustraliaTasmaniaVictoriaWestern AustraliaAustralian Capital TerritoryNorthern TerritoryAutomobile and other insuranceIf
the nanny has use of your car, make arrangements to include them under
your policy. Check to ensure that compulsory third party insurance also
covers third party property damage and if your nanny is under 25 years
of age, you should check what additional provisions need to made to
cover them under your policy.
You may also wish to request that
your nanny have additional insurance. Policies available for nannies can
be obtained from Altiora Childcare who specialise in all forms of Child
Care Insurance or Nannysure (underwritten by QBE).
For further information visit
altiorachildcare.com.au or
nannysure.com.auAdditional ExpensesAny
additional out of pocket expenses should be agreed upon. It's a good
idea to set aside an additional cash amount each week to cover outings,
snacks, excursions, swimming classes etc.
If the nanny will be
using their own car for work related tasks then an allowance to cover
fuel costs and additional wear and tear on the car should also be set
down.
A log book should be established to record kilometres travelled in the course of their duty.
Ask your nanny to check their insurance policy to ensure appropriate cover for transportation of your children.
Notice PeriodAgree
on a notice period including any arrangement for payment in lieu of
notice. The standard notice period is generally two to four weeks.
Probation Salary & Performance ReviewsConduct
regular salary and performance reviews. Set down the times for a
performance review. For example after the 3 month probation period, have
another review at 6 months followed by a 12 month salary and
performance review.
Consider a mediation procedure for any issues or grievances that need to be raised throughout the period of employment.
Contract Review and/or AmendmentsIn
the event of the birth of another child, both parties should discuss
the continued employment arrangements, including a review of the current
employment contract.
CommunicationMany
nannies cite poor communication as a reason for leaving a post, so take
time at the beginning and the end of each day to discuss the children.
If this isn't possible, introduce a diary system which allows the nanny
to record the events of the day including appointments, meals, social
outings, sleep times and medications as well as the child's
developmental steps.
Consider a weekly review which involves an informal discussion allowing both parties to give and receive feedback.
Provide
positive feedback and praise for a job well done; conversely, if you
are unhappy in any way with the nannies performance, discuss this
immediately.
Click here for an example of a diary system you could introduce.
ConfidentialityIt is also important to consider a confidentiality agreement to ensure that the affairs of the household is kept confidential.
Here is an example:
The
employee shall keep the affairs and concerns of the household and it's
transactions and business confidential. It is a condition of employment
that except as required by Law, the employee shall not disclose
confidential information to any persons whatsoever without the consent
in writing of the employer. This provision shall apply for all time and
survives expiration or earlier termination of this Agreement. The
operation of this clause shall not apply to information disclosed to
medical or other health professionals in the course of obtaining
treatment for the child(ren).Other BenefitsLook at longer term benefits to make the job as attractive and enjoyable as possible.
Benefits you may wish to consider include:
- Good living quarters (if applicable)
- Use of a car
- Occasional late starts and early finishes
- Cash Bonuses
- Health cover
- The occasional token of gratitude such as night out, movie tickets, pamper pack
All of the research about early care and education leads to one overriding conclusion - quality matters.
To get started and put your Nanny Employment Contract together
click here for an example contract you can use as a guide.
If
your nanny is a trusted and valued employee whom you wish to retain,
then these incentives can go a long way in improving staff retention.
Other Useful information from CareforKids.com.au:
Help to keep lines of communication open with your Nanny - print out this useful
daily diary