Although there are positive signs that the UK economy is starting to pick itself up, many parents are still feeling the effects of having to tighten their belts. And as we all know too well, in difficult times one of the first 'luxuries' to go is the nanny. But redundancy in the nanny profession is not only linked to the current economic climate, it is an issue endemic to nannying, and most nannies who stay long enough in one job will in all likelihood eventually face redundancy.
There is a lot of confusion in nannying on the issue of redundancy. Many nannies, parents and nanny agencies assume that because of the unique circumstances that exist between a nanny and her employer, she doesn't qualify for redundancy pay.
But providing you meet the requirements, you are entitled to redundancy pay just like any other employee, protected mainly by the Employment Rights Act 1996.
Do I qualify?
To qualify you must be 18 or over and have at least two years' continuous employment. This means that you must have been working for the same family, without any breaks, apart from maternity, sickness and unpaid leave, for at least two years. You must also be working as an employee under an employment contract and have a PAYE scheme set up on your behalf.
This does not mean that you need to have a written contract, as some employers unfortunately don't provide this. You are still considered an employee working under a contract even if there is nothing in writing.
If your family's circumstances change and they no longer have a full-time job for you, perhaps because of the children attending school full-time or one parent working part-time, and they want to employ a nanny on a part-time basis, they are required to first offer the 'new' position to the you, the existing nanny. If you choose not to continue working for them under the new conditions, you are still entitled to redundancy pay, unless you are on a fixed-term contract. A fixed-term contract is one that has to specify a particular date when the employment will expire; annually reviewed contracts and salaries would not be considered fixed-term.
You will also qualify for redundancy pay if the family you work for moves to a different part of the country, providing there is no relocation clause in your contract.
How much will I get?
If you are between 18 and 21 you qualify for half a week's pay, or 130, whichever is lower, for every year of continuous employment. If you are between 22 and 40, you qualify for one week's pay, or 260, whichever is lower, for every year of continuous employment, and if you are between 41 and retirement you will qualify for one and a half week's pay, or 390, whichever is lower, for every year of continuous employment.
As an employee on PAYE you are legally entitled to these amounts; however, your employer is free to pay you more than the statutory minimum at their own discretion. But they cannot claim any part of their costs back from the state. You do not have to pay tax on redundancy payments up to 30,000.
If your employer refuses to pay, you must make a written request to them within six months of the end of your employment, and then be prepared to follow this up. Any appeal to an employment tribunal must also be made within six months.
How will I cope?
Losing your job is never easy. Not only can unexpected redundancy leave you in a financially difficult situation; it can also wreak havoc with your self-esteem. There is still a lot of stigma attached to redundancy and you may temporarily feel that you have lost your sense of purpose. But keep in mind that an unexpected break can bring about life-changing opportunities, so try to stay positive. Give yourself time to assess your goals, re-work your CV, and talk to others about your experience. You may also want to grab this opportunity to take a course to add to your skills. And when you go to interviews, be honest about your situation. Most parents know that redundancy is more common in nannying than most other professions.
If you have any questions about your rights to redundancy pay, please contact Nannytax on 0845 226 2203 or visit www.nannytax.co.uk.
Asa Nilsdotter is the communications manager at the payroll service Nannytax
USEFUL CONTACTS
* The Advisory, Conciliation and Arbitration Service has a very useful website at www.acas.org.ukand a telephone helpline on 0845 474747. There is also a redundancy pay helpline on 0845 145 0004.
* Redundancy legislation comes under the Department for Trade and Industry.
See the website for its Employment Relations Directorate at www.dti.gov.uk/er,where you can obtain a booklet about calculating redundancy pay.
