Legal /Employment Help page is designed to help you understand how the law applies in Australia to Nannies and similar roles.  It includes sections on

1. Employment vs contractor information
2. Sample Contract and Job Description
3. Insurance Information
4. Wage Guide
5. Remember these things.

In Australia there are various legal structures for working, and these apply to all professions, including Nannying.

You can also work for “Cash” (which in Australia means you are paid off the books with no contract – illegally).  However we strongly suggest you do not do this as you will lose various legal protections and open yourself up for investigation by the authorities.

Employment Types

You can work as an employee, or as a contractor.  While there are some legal restrictions on these options, at the time of writing Nannies are working both ways legally.

The difference between contractors and employees

Independent contractors have different obligations and rights to employees because they are running their own business. This means it’s important to understand the difference between the two.

There are a number of things that can help you tell the difference between an employee and a contractor. There isn’t one that makes a difference on its own – you need to consider everything together.

For more information on the differences between employees and independent contractors you can read the Independent contractors and employees fact sheet.

For help in deciding whether you are an employee or an independent contractor you can visit business.gov.au – Independent contractors  or seek independent legal advice.

Employees

While being an employee seems self-explanatory, there are some things to remember

1. You should receive a payslip at the end of each pay period (weekly, fortnightly or monthly).
2. This payslip should show you how much money has been paid into your super fund.  This may not seem important now, but will be one day.
3. The employer is required to get Work Cover/Insurance for employing you.  This is a form of insurance for you – should you be injured at work.
4. The employer will collect and pay your tax and give you a Payment Summary at the end of the year for you to do your tax return.
5. Although you do not need insurance, we still recommend you get it.

Your employer can be the family you are working for, or possibly an agency.  Your employer may provide you will a timesheeting paper/app, or you can create your own (ANA Template hereXXXX).  FairWork also has a sample Timesheet.

Employment Contract.

It is recommended you get a copy of your contract prior to agreeing to work for the employer, or at least prior to starting work.  The contract should cover your legal rights and responsibilities.  FairWork has some resources for your employer to create the contract. ANA has produced a Nanny Employment Contract Template that you can use if the family is amenable.

Things you should double check

1. Pay rate is included (and specifies that superannuation guarantee will be additional to that).
2. Hours of work
3. Leave Entitlements
4. Termination Periods (on both sides).

The National Employment Standards (NES) are 10 minimum employment entitlements that have to be provided to all employees. The national minimum wage and the NES make up the minimum entitlements for employees in Australia.

Contractor

As a contractor, you are effectively like your own business.

1. You will need to decide on a structure for your business (Company, Trust, Partnership or Sole Trader).  It is recommended you talk to an accountant to find the best structure for your individual circumstances.
2. You will need to get an ABN from the Tax Office.
3. You will need to issue an invoice to your family and ensure it gets paid.
4. You will have to pay your own superannuation out of these earnings.
5. You will have to organise your own insurance.
6. You may need to charge GST and recover that from the government via BAS.  We recommend you talk to your accountant about this.

Job Description

Regardless of your employment type, you will need something that outlines your job description, ie What work you are expected to do.  Things to consider

1. While “Nanny” implies looking after the children, there are often additional duties.
   1. Kitchen.  Are you expected to wash up and tidy the kitchen for the entire family, just the children’s food or not at all.
   2. Clothes washing.  Again, entire family, children’s or not at all.
   3. Are you expected to organise medical appointments and take the children.
   4. House Manager.  Do you help with paying bills, organising tradespeople for simple repairs.

It is best to get clarity on all this in the first job interview.

Insurance

If you are a contractor you will have to get insurance.  If you are an employee it is recommended.  Nannysure has been a sponsor of ANA for many years.

Wage Guide

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Remember

Superannuation is your right if you are working as an employee.  Employers are only required to pay your superannuation every three months, and some Nannies have discovered months down the track that it was never paid.

 

While the Working with Children Check is not legally required to work as a Nanny, it is a requirement of membership of the ANA that your Working with Children Check is up to date.  The ANA strongly supports this initiative to help keep Australian children safe. See our page for more information https://www.australiannannyassociation.org.au/working-with-children-check/

First Aid certificates are also not legally required to work as a Nanny, but honestly, do you really want to be in charge of someone else’s children without even some First Aid Training?  The ANA also requires all Nanny members to have their First Aid Certificate.

External Links

The FairWork commission has many useful pages.  In particular they have a guide for young workers, as well as the Templates page mentioned above.

The ATO has pages on tax for individuals and businesses.