Crafting the Perfect Nanny Contract for 2025: A Comprehensive Guide

Nanny contracts can be overwhelming. We’re in another new year, and for many of our clients- that means starting a new search with our agency, Nanny Poppins. Finding the right nanny’s or any domestic staff member, is a significant decision for any family. A clear, comprehensive contract is crucial for establishing expectations, protecting both parties, and fostering a positive, long-term working relationship.

This guide outlines everything you should include in your 2025 nanny/domestic staffing contract, ensuring a smooth and successful partnership. In our opinion, the subjects you should cover should include at least the following topics: Parties Involved, Basic Terms of Employment, Schedule & Hours, Compensation & Benefits, Duties & Responsibilities, Onboarding & Training, Performance Reviews & Raises, Confidentiality, Notice of Termination, Disciplinary Procedures & Governing Law, and Closing Signatures.

Nanny Contracts: Parties Involved, Basic Terms of Employment, Schedule & Hours

First, let’s start with basics: Parties Involved, Basic Terms of Employment, Schedule & Hours. Start by clearly identifying the parties involved: the family (parents/guardians) and the nanny. Include full legal names and contact information. Specify the start date and whether the position is for a fixed term or ongoing. If fixed, include the end date.

If ongoing, consider including a trial period (e.g., 3 months) for both parties to assess the fit. To make sure you have all details clear, you should be very thorough about the Schedule & Hours. Use a detailed weekly schedule to outline your employee’s regular working days and hours, including start and end times. Be specific about which days of the week are required.

Go over the guaranteed hours, and specify a guaranteed number of paid hours per week, even if the household doesn’t require care for the full duration (e.g., due to school closures or family vacations). This provides the hireé with predictable income. Define how overtime is calculated (e.g., time and a half for hours exceeding 40 per week) and how it will be compensated. Ensure compliance with local labor laws. Discuss the level of schedule flexibility required (e.g., occasional evenings or weekends).

If flexibility is expected, outline how these extra hours will be compensated and how much notice the family will provide. Specify which holidays the employee is entitled to (paid or unpaid) and how holiday pay will be handled. Consider mirroring federal or commonly observed holidays.

If you believe you will need help on the holidays, provide incentive and clearly state the amount of paid vacation time the nanny is entitled to per year, how it accrues, and how far in advance requests must be made. Coordinate vacation time with the family’s needs. Define the amount of paid sick leave that your employee is entitled to and any requirements for doctor’s notes. Outline the procedure if your employee is sick or unable to work. Specify how much notice is required and what the family’s expectations are for finding a backup caregiver, should the position be a nanny or caregiver.

Nanny Contracts: Compensation & Benefits, Duties & Responsibilities, and Onboarding & Training

Next, let’s cover Compensation & Benefits, Duties & Responsibilities, and Onboarding & Training. Start by clearly stating the agreed-upon hourly rate or annual salary. Specify how often the domestic employee will be paid (e.g., weekly, bi-weekly). Outline the method of payment (e.g., direct deposit, check). Discuss tax responsibilities.

We highly recommended that families pay “on the books” and withhold appropriate taxes (Social Security, Medicare, and federal/state income tax). Consider using a payroll service to simplify this process. We encourage our clients to speak with one and cover all state & federal labor laws. If you would like to know which company we have recommended to our clients, for years- call us today at 888-849-6090! Detail any additional benefits offered, such as health insurance contributions, paid time off (vacation, sick leave), professional development stipends, mileage reimbursement (if applicable), or contributions to a retirement plan.

For duties and responsibilities, clearly outline the specific duties and how often each needs to be done (e.g., what needs to be done daily vs. weekly vs. monthly…). Be very clear about what is expected and what is not. Avoid scope creep. Establish clear communication expectations, including how often the employee should provide updates regarding the household or its members to the principals (e.g., daily reports, weekly summaries).

To make sure onboarding helps to best get your employee started, consider a short initial training period to allow the nanny or domestic employee to become familiar with the family’s routines, house rules, and any specific needs. Specify any required certifications (e.g., CPR, First Aid) and whether the family will cover the cost of obtaining or renewing them.

Nanny Contracts: Confidentiality, Performance Review & Raises, Notice of Termination, and Disciplinary Procedures & Governing Laws

In today’s day and age of rampant data sharing and social media, it’s best to be very clear about expectations surrounding your family’s security and confidentiality, in addition to your employee’s. Include a confidentiality clause that protects the family’s privacy and make sure all language is very clear. This clause should address the handling of sensitive information, both verbally and in writing. Knowing that there is growth and incentive to stay longterm will lead to satisfaction for both parties.

Schedule regular performance reviews (e.g., annually) to discuss the nanny or employee’s performance, address any concerns, and set goals for the future. Discuss the possibility of raises based on performance, experience, and cost of living adjustments. Consider tying raises to performance reviews.

While we would love for both our clients and their hires to work together well for as long as possible, eventually everything comes to an end. In order to make the transition as peaceful as possible, use very clear language here. Specify the amount of notice required from both the family and the nanny before terminating the employment relationship (e.g., two weeks, one month). This should comply with local labor laws. Consider including information about severance pay, if any, under certain circumstances.

Lastly, outline the process for addressing any performance issues or breaches of the contract. State which state’s laws will govern the contract. Both the family and the nanny or domestic employee should sign and date the contract, indicating their agreement to the terms. To work with us and gain access to all our resources, including both an offer letter and work agreement template, check us out today at nannypoppinsagency.com.

This blog post is for informational purposes only and does not constitute legal advice. It is highly recommended that both the family and the nanny consult with legal counsel to ensure the contract complies with all applicable laws and protects their respective interests. A well-crafted nanny contract is an investment in a successful and harmonious childcare arrangement.

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No matter your reason for hiring, Nanny Poppins Agency is here to listen and assist you in your search. We have the resources and database to fill any position, and we are often working on our assignments 7 days a week! Call us today to get started on your search: 888-849-6090. You can also visit our website to learn more about our open positions- nannypoppinsagency.com. 

Are you ready to make your decision on which role to hire for your family’s new addition? Or maybe you still need our guaranteed free consultation to help make a final decision. Don’t bother googling “nanny near me”! We are a nationwide agency ready to help you today. With nearly 3 decades of experience, we are here to carefully cultivate your childcare needs, as well as completely customize your search.

Enjoy the article but looking for another role to fill? While many think we are only a nanny agency that supplies nanny services, Nanny Poppins can staff any one of your household needs! Housekeeping, nannies, personal assistants, butlers, house managers, personal chef, estate managers- we do it all. 

Visit our website nannypoppinsagency.com or give us a call today- 888-849-6090 to speak with one of our seasoned professionals.