For a full time nanny working 5 days per week it is super simple to calculate the holiday pay as it is the industry standard of 28 days per year (5.6 weeks). If the nanny is working part time then the holiday days are calculated as ‘pro-rata’ and so for example if the nanny works 2 days per week — she should receive holiday pay of 5.6 weeks of just two days making a total of 11.2 days per year.
The extra 1.6 weeks on top of the 4 weeks (=5.6) is meant to compensate employees for bank holiday days in the UK. Therefore you need to arrange with your nanny if bank holidays are paid for and if they are included in the overall holiday entitlement. Your contract should state if bank holidays are regarded as usual working days, or if they are actual holiday days.
The usual agreement between a nanny and an employer is that the nanny can choose two of the weeks for when she has a holiday and that the employer can choose the two remaining. Many families decide to employ a holiday nanny to cover for their usual nanny.
In the tax year 2017–18, all nannies earning over £113 per week are entitled, as a minimum, to Statutory Sick Pay (usually abbreviated to SSP) during sick leave. This is also ideally laid out in the contract but they are entitled to it even if not stated there. A nanny who earns less than £113 per week will only be entitled to sick pay if this is specified in their contract. See our post here where you can also download our model contract.
Sick pay is only payable from the fourth working day of absence and it should be paid at a flat rate of of £89.35 per week. In the contract, employers should remember to place a limit on any additional sick pay agreements.