Understanding your employment status as a nanny can be confusing at times. Do you know if you are classed as an employee or self-employed? Are you entitled to certain employee benefits? This article will provide clarity on these questions and help you understand your rights, duties, and responsibilities in the UK.
Employee or Self-Employed?
In the UK, the majority of nannies would typically be classed as employees or ‘workers’, and this will be the case if we find you a permanent role via our agency.
You’ll be considered a ‘worker’ if:
- You have a contract or other arrangement to do work in return for reward
- The reward is either monetary or a ‘benefit in kind’
- You have limited rights to sub-contract
- You’re not doing the work as part of your own limited company where the employer is a customer or client.
Exceptions to this rule are if you work for three or more families at one time or if you undertake various temporary positions. If you are unsure of your employment status, we would recommend contacting HMRC to clarify your position.
As an employee, there are certain rights that you’ll be entitled to, such as being paid on time, having a clear contract of employment, receiving holiday pay and being provided with proof of payment for tax purposes by your employer.
There are also other rights related to maternity leave, parental leave, redundancy payments and much more. These are statutory rights, meaning that no-matter your employer, you’ll likely be entitled to them if you meet certain conditions. It’s worth noting that some employers may choose to offer enhanced benefits – for example enhanced sick pay or parental leave. You can discuss this with your nanny consultant and any enhanced terms will be outlined in your contact.
Taxes & Insurance
If Bubble places you in a role, then taxes will be taken care of automatically through PAYE (Pay As You Earn). This means that your income tax and national insurance contributions (if you earn over the thresholds to pay for these) will be automatically deducted from your pay-check. If you’re self-employed, you’ll need to file a tax return form and will bare the responsibility of ensuring you pay correctly.
You may also want to consider taking out insurance cover against public liability and professional indemnity which often comes at a very reasonable cost. You may want to check the terms of your home-insurance as they may cover you already for some of these circumstances.
Understanding your rights and entitlements as a nanny can be confusing – but it doesn’t have to be. When you find a role through Bubble, we’ll be able to help you with any queries you may have and make sure you’re feeling confident about your new role.