For customers· 4 min read

Nanny Contracts & Agreements: What Should Be Included?

Essential terms for nanny employment contracts: duties, pay, schedule, termination, and legal protections for families.

A written nanny contract protects both you and your childcare provider by setting clear expectations before work begins. Without one, misunderstandings about pay, hours, responsibilities, and termination can damage an otherwise good working relationship. This guide walks you through what belongs in a solid nanny agreement.

Why a Written Contract Matters

Verbal agreements fade from memory. When your nanny expects 40 hours weekly but you thought it was flexible, or when you assumed sick days were unpaid while she didn't, conflict erupts. A contract documenting these details upfront prevents costly disputes and protects both parties legally if issues arise.

Even if you hire someone through a platform, you'll want to customize a contract for your specific household needs and local employment laws.

Core Sections to Include

Compensation & Payment Terms

Specify the hourly rate or annual salary clearly. State whether you're paying $18–$25 per hour (typical for experienced nannies in mid-sized U.S. markets) or a set salary for full-time work. Include:

  • Payment frequency (weekly, bi-weekly, or monthly)
  • When pay is due (same day as hours end, or by Friday)
  • Overtime policy (typically time-and-a-half after 40 hours/week)
  • Expense reimbursement (groceries for children's meals, activity fees)
  • Tax withholding (you're responsible for federal and state taxes as an employer)

Schedule & Hours

Detail the expected days and times. For example: "Monday–Friday, 7:30 a.m.–6:00 p.m., with flexibility for Thursday early dismissal at 2:30 p.m." Include:

  • Drop-off and pickup expectations for additional children
  • Meal breaks (paid or unpaid, and duration)
  • Notice required for schedule changes (e.g., 2 weeks for reduced hours)
  • After-hours contact expectations (is texting for urgent questions okay after 6 p.m.?)

Paid Time Off

Specify vacation days, sick leave, and holidays. Most full-time nannies receive 2–3 weeks paid vacation annually plus 5–10 paid sick days. Clarify:

  • Which holidays are paid (Christmas, Thanksgiving, etc.)
  • How much notice you need for vacation requests
  • Sick day notification procedure (call by 6 a.m., or earlier if possible)
  • What happens if she runs out of sick days (unpaid time, or use vacation days)

Job Responsibilities

List specific duties to avoid scope creep. Examples:

  • Childcare and supervision during scheduled hours
  • Meal preparation for children
  • Light housekeeping related to child care (toy cleanup, children's laundry)
  • Driving to school or activities (if applicable)
  • Basic first aid and age-appropriate discipline
  • Communication with parents (daily updates via text or app)

Exclude tasks like deep cleaning, pet care, or cooking for adults unless explicitly agreed and compensated separately.

Termination & Notice

State how much notice either party must give before ending the arrangement. Thirty days is standard for both sides. Address:

  • Immediate termination (rare, but cover circumstances like misconduct or child endangerment)
  • References and severance (some families offer one week's pay as severance)
  • Final paycheck timing (same day, or by state law, typically within a few days)

Confidentiality & Privacy

Your nanny sees your family's routines, finances, and personal dynamics. Include a clause requiring her to keep family information private and prohibiting photos or posts on social media without permission.

House Rules & Discipline

Outline your parenting approach. Note whether you permit screen time, how your nanny should handle tantrums, what foods are off-limits, and how to reach you in emergencies. Agreement here prevents frustration later.

Insurance & Liability

Clarify who covers accidents. Most nannies don't carry their own liability insurance; homeowner or renter policies usually don't cover household employee injuries either. Consider hiring through an agency (which carries insurance) or adding an endorsement to your policy for in-home employees.

Before You Sign

Have an employment attorney review the contract if you're hiring a full-time live-in nanny or manage household staff regularly. Costs run $150–$400 for a quick review and save headaches later. Many states also require employers to provide specific notices about wage laws and workers' compensation.

Use Mercoly to compare and find trusted household and family manager services providers in your area—many offer pre-drafted contracts or guidance on local employment requirements.

Frequently Asked Questions

Q: What if my nanny works part-time (under 30 hours weekly)? Part-time nannies typically earn $20–$28/hour and may receive limited or no paid time off; clarify this in writing.

Q: Am I required to withhold taxes if I pay my nanny under the table? No, but it's illegal—you expose yourself to IRS penalties, back taxes, and fines; consider a payroll service like Care.com or Bambino to simplify tax compliance.

Q: Should the contract address what happens if my family takes a vacation? Yes—state whether the nanny is paid for your vacation days, can take unpaid time off, or should find temporary work elsewhere.

Start by drafting a contract based on your family's actual schedule and expectations, then adjust it as you learn more about your nanny's needs.

Looking for Household & Family Manager Services?

Compare trusted Household & Family Manager Services providers on Mercoly — browse profiles, products, and services and reach out in one place.

Related articles

More in Nanny, Babysitting & In-Home Care · Household & Family Manager Services