Holiday Entitlements
Current statutory minimum holiday entitlements implemented on 1st April 2009 are 28 working days for a five day week or pro–rata for less days worked in the week. The 28 working days includes the option for nannies to nominate 8 bank holidays in the 28 working days paid holiday including a pro rata basis. This bank holiday rule was introduced as the UK is a multi cultural society and when a nanny works for an employer where the two celebrate different cultural holidays the nanny is protected from working if they so choose on their bank holidays by the statutory minimum entitlement pertaining to paid holiday being taken on bank holidays. For example a nanny may nominate to take Christmas day & Boxing day and the New year’s day as paid bank holidays even though the employer may not necessarily celebrate these holidays It does not mean that if a nanny works only Tuesday, Wednesday & Thursday that they cannot nominate bank holidays as bank holidays are not restricted to Mondays & Fridays as many cultural holidays fall on different days of the year although they are normally on the same date each year.
Nannywage Ltd Ensure you are HMRC compliant by entering the correct pro-rata statutory minimum holiday entitlement in the Employment contracts offered to all subscribers to our service.
| Days of the week worked | Work Days | Bank holidays | Total holiday entitlement pro rata for the year |
|---|---|---|---|
| 1 | 4 | 1.6 | 5.6 |
| 2 | 8 | 3.2 | 11.2 |
| 3 | 12 | 4.8 | 16.8 |
| 4 | 16 | 6.4 | 22.4 |
| 5 | 20 | 8 | 28.0 |
Statutory Sickness Payment
Where a HMRC small employer PAYE scheme is being operated Statutory Sickness Payment is received by the nanny on the 4th consecutive working day of sick leave from the government.
During the first three days of sick leave the employer decides if they wish to pay the nanny her salary for none, one, two or three days prior to SSP starting.
Likewise once SSP starts the employer decides if they wish to “top up” the salary of the nanny to any level they wish over and above the current SSP rate.
Normally the employer and nanny also agree in the employment contract a total amount of sick days per year that the employer will pay the sick nanny her salary prior to SSP starting on the 4th consecutive working day and a generous average is 6 days in total during one year of employment.
The employer is under no obligation to make salary payments or salary “top ups” during sick leave and may opt to include in the employment contract that. “ The employer will not pay the nanny from the first day of sickness and the nanny will receive SSP only”.
Nannywage Ltd handle all of this on your behalf. All you need to do as a subscriber to our service is complete a SSP form on the FIRST day of sickness. We then calculate SSP on your behalf and include SSP payments in the next wageslip. You then pay the net as shown on the wageslip in the normal way.
Statutory Maternity Pay
Current statutory maternity pay entitlement is for 39 weeks of paid maternity leave for the pregnant nanny.
To qualify the nanny must have worked for you for a minimum period in an employer PAYE scheme. When your nanny goes to her doctor to confirm her pregnancy she will be given a MAT B1 form, please send us the original, a copy or e-mail us a copy, without us having a copy of the MAT B1 form we cannot process Statutory Maternity Pay ( SMP )
You will need to inform us if you are paying her any salary during SMP ( Normally employers DO NOT “top up” salary and the nanny receives only SMP)
During SMP your nanny officially is still in your employ, you continue to provide wageslips, pay her the net shown on the wageslips, pay any Tax & NIC to HMRC.
SMP is for 39 weeks and she receives 90% of average salary for the first 6 weeks and then SMP after the 39 weeks she can take a further 13 weeks unpaid leave and then after the total of 52 weeks either has to return to work or officially leave your employment.
The first 26 weeks is known as Ordinary Maternity leave (OML) and your nanny retains her
employment rights and has the right to return to work at the end of the 26 weeks
The second 26 weeks is known as Additional Maternity leave (AML) and must follow on from (OML)
with no gaps, the nanny retains her employment rights and if the nanny wishes to return to work
after (AML) the employer can offer the nanny their old job back, unless this is not reasonably practical
You cannot terminate her employment during these 52 weeks of Maternity leave. You pay her in the normal way and every quarter April, July Oct and Jan we claim the TOTAL SMP back from HMRC on your behalf
During SMP the nanny wages will cost you NOTHING we preclaim the TOTAL SMP paid from HMRC on your behalf. Plus 3% on top of the actual SMP salary paid. which helps towards your administration costs. On an average nanny salary and running the full 39 paid weeks we reclaim for you something in the region of £200 more than covering our fees and any postage you may incur.
If at anytime during the 52 weeks the nanny returns to work for you or officially leaves your employ to start work elsewhere you MUST inform us immediately so that we can stop SMP.
- Get written intentions from the nanny prior to maternity leave regarding her return to work
- Any salary being paid on maternity leave, normally employers do not “Top up” the nanny receives SMP only
- Send us the Mat B 1 form.
- Inform us of the Last working day of your nanny before they start SMP leave
Ensure you inform Nannywage Ltd and your nanny of your salary intentions
Nannywage Ltd then handle everything on your behalf.
If the nanny has not worked for you long enough to qualify to be paid SMP via your PAYE scheme, we send you a completed SMP 1 form for the nanny to claim SMP via benefits not the payroll. The nanny receives no wageslips while on SMP benefits but you must still administer your PAYE scheme with HMRC and we charge 2 months subscription to administer the payroll for upto the year of SMP leave and file end of year returns and continue to liaise with HMRC on your behalf to ensure HMRC compliance.
As an employer you are required by law to insure your staff against liability for injury or disease known as Employer’s Liability Insurance.
The total value of the policy should be a minimum of £5 million but it is to be remembered that the minimum level of cover also includes costs, so you may wish to increase your cover above the minimum required.
Without suitable employer’s liability insurance you could be fined £2,500 for every day that you do not have cover and it is essential that you protect yourself from damages and costs arising from injury to staff at work, not only from the injury itself but also from potential future loss of earnings claims. These observations are for information purposes only and are not a legal interpretation of the Employer’s Liability ( Compulsory Insurance ) Act