Is your nanny your employee?

Traditional methods of child care and support aren’t always suitable for everyone. Engaging a nanny or an au pair supports families who struggle to access child care services, particularly if they work night shifts, non-standard hours, or live in remote areas or away from existing child care facilities.

The cost and accessibility of child care can be a big barrier for parents who want to work or work longer hours and nannies can provide the adaptability needed to make sure our most precious ones are cared for when we work.

So if you engage a nanny or an au pair, has this made you an employer and you didn’t even realise?  According to Fair Work Australia, nannies and au pairs in private homes are most often engaged as employees but this doesn’t mean nannies can’t be genuine independent contractors.

Au pairs are often employees too in their view with some variations.  The can be like live in employees, working long hours as a child carer for the family.  That said, some au pairs aren’t in an employment arrangement and Fair Work gives the example of an au pair visiting Australia that might stay with a family for the cultural experience and provide only a small amount of assistance looking after the children.  An au pair in this situation is less likely to be considered an employee unless the family has a lot of control over the au pair’s day to day activities.

Employee’s working as nannies and au pairs aren’t covered by an award.  That being the case, they are however, still entitled to the national minimum wage and subject to the National Employment Standards. From 1 July, 2016, the Federal Minimum Wage for full time and part time employees who are over 21 years of age is $ 17.70 per hour or $ 672.60 per week with casual employees now paid $ 22.13 an hour (this includes a Casual Loading of 25%).

Award and Agreement Free Juniors are paid a percentage of the national minimum wage using the aged based percentage scale of the Miscellaneous Award.

The minimum 10 entitlements of the NES for Full Time and Part Time Employees are:-

  • Maximum weekly hours (an employee can work a maximum of 38 ordinary hours in a week)
  • Requests for flexible working arrangements
  • Parental leave and related entitlements
  • Annual leave
  • Personal carers leave and compassionate leave
  • Community service leave
  • Long service leave
  • Public Holidays
  • Notice of termination and redundancy pay
  • Fair Work Information Statement

Casual employees and the NES

Casual employees only get NES entitlements relating to:

  • Unpaid carer’s leave
  • Unpaid compassionate leave
  • Community service leave
  • The Fair Work Information Statement

Additional Links:

If you’re not sure of the difference between an employee and an independent contractor in this context, please see Independent Contractors.

Read also: Consider nannies and au pairs: Is my babysitter actually an employee

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