Providing Nannies meet the requirements, they are entitled to redundancy pay like any other employee. So it’s really important that Nannies understand their rights as it can be a tricky situation to navigate at a worrying and emotional time.
What is Redundancy?
Redundancy happens when an employee is dismissed (made redundant) due to their services being no longer required or when the job they do becomes obsolete.
A change in the family circumstances – what are my rights?
Employer’s circumstances can change and they may no longer have a full time job for the nanny, for example children starting Nursery or School and a reduction in hours being required. If part time work is still available the employer is required to first offer the ‘new’ position to the existing Nanny. If the Nanny doesn’t wish to take the new part time hours/new contract of employment they are still entitled to redundancy pay unless they are on a fixed term contract.
What if redundancy is caused due to the family moving out of the area?
The nanny will still qualify for redundancy unless there is a relocation clause in the contract of employment.
Will the Nanny qualify for Redundancy pay?
To qualify for redundancy the nanny must:
- Be working as an Employee with a PAYE scheme and with an employment contract*
* The contract does not have to be a written contract as some employers unfortunately do not provide this. A nanny can be considered an employee working under a contract even if the agreement was verbal.
- Have a minimum of two years of continuous employment with the same family
How much will a Nanny receive in Redundancy pay?
This depends on your age and length of service with the family.
If you are aged 22-41, you are entitled to one week’s pay for every year of service.
If you are aged 41 – to retirement age, one and a half weeks pay for every year of service
You can visit the Gov website calculator here for further details here: https://www.gov.uk/calculate-your-redundancy-pay
Can my employer pay me more than the statutory amount?
Being on PAYE (Pay as you earn) a Nanny is legally entitlement to these statutory amounts. Your employer is free to pay more than the statutory requirement.
Do I have to pay Tax on the Redundancy payment?
No, the nanny does not need to pay tax on redundancy payments up to £30,000
Being made redundant can be a worrying and emotional time, its never easy leaving behind children you have loved and cared for whilst also worrying about the financial implications and stresses of finding a new role, but don’t worry, help is at hand.
If you are facing redundancy and would like some support regarding this or in finding a new role, we are happy to help.
Please don’t hesitate to get in touch:
Tel: 0208 15 00017
Email: [email protected]