New Year, New Contracts: Updating Your Nanny or Caregiver’s Employment Agreement

The start of a new year is a natural time for reflection and renewal—not just personally but also professionally. If you’ve got a nanny or caregiver, this is an excellent opportunity to review and potentially update the employment contract to reflect any changes that have occurred over the past year and to set clear expectations for the year ahead. This ensures you’re both on the same page and can move forward with mutual understanding and respect. Here’s how to thoughtfully approach this important task.

The Importance of a Current Contract

An up-to-date contract isn’t just about legality; it’s about clarity, fairness, and respect in the professional relationship you share with your employee. Over the course of a year, many aspects of your original agreement might shift—be it your nanny or caregiver’s responsibilities, work hours, or even your family dynamics. 

Step-by-Step Guide to Updating Your Nanny or Caregiver’s Employment Contract

Reflect on the Past Year

As discussed in our previous blog “What to Include in an Employment Contract for a Nanny or Caregiver”, it’s important to cover all essential elements in your employee’s contract. This new year update should build on that foundation. Start by reviewing the current contract and how well it worked over the past year. Consider any situations where misunderstandings occurred or where you found the contract lacking. Did the responsibilities change? Were there any discrepancies in work hours or compensation? This reflection will provide a solid foundation for your revisions.

Discuss Changes with Your Nanny

Before making any changes to the contract, have an open discussion with your caregiver. Having a conversation about changes in the employment contract can be sensitive, especially if it involves topics like increased responsibilities or adjustments in scheduling that might not immediately be welcomed.This conversation can cover changes in job duties, adjustments in hours, or updates to compensation. It’s also a good opportunity to address any concerns or suggestions your nanny or caregiver might have. 

Update the Contract Terms

Based on your review and discussions, start updating the contract. Here are some key areas to focus on:

1. Duties and Responsibilities: Clarify any changes in daily duties or overall job responsibilities. Be as specific as possible to avoid future misunderstandings.
   1. Example Change: If your kids have started school and no longer need daytime care but require after-school care, update the contract to specify the hours and types of after-school activities your nanny is responsible for, such as homework supervision, extracurricular transport, or meal preparation for dinner.
   2. Example Addition: Suppose your family has grown and you have a new baby. In that case, you’ll need to update your nanny’s contract to include care of an extra child. Make sure to detail any other additional responsibilities such as scheduling and attending pediatric appointments, handling baby-specific laundry, and preparing meals once solids are introduced. Your nanny may also be responsible for engaging the baby in developmental activities, managing sibling care to balance attention and documenting daily routines like feeding and nap times. Clearly defining these tasks ensures the nanny understands the scope of their duties and helps maintain clear expectations.
2. Work Hours and Scheduling: Reflect any changes in working hours, including shifts in start or end times, and how flexibility will be handled. If your nanny or caregiver now works occasional weekends or evenings, make sure this is documented.
   1. Example Change: If your work schedule has changed and you now need your employee to start earlier or work later, document the new hours precisely, including any adjustments in breaks or downtime.
   2. Example Addition: If there are certain weeks where overtime might be needed (e.g., when one parent is traveling for work), outline how these hours will be logged and compensated.
3. Compensation and Benefits: Adjust the salary if there has been a change in duties or if a raise is due. Also, review benefits such as health insurance, paid time off, or bonuses.
   1. Example Adjustment: With an increase in responsibilities or hours, an appropriate raise should be reflected. For instance, if the nanny’s hours have increased from 30 to 40 per week, adjust the salary to reflect this change.
   2. Example Enhancement: If you’re adding benefits like healthcare contributions or gym memberships, detail what is covered and the process for accessing these benefits.  Read our past blog https://nannytax.ca/supporting-your-nannys-well-being-providing-a-health-and-dental-benefits-plan-for-domestic-employees/) for some important considerations about health and dental benefits. 
4. Statutory Holidays, Vacation and Sick Leave: Confirm the terms regarding vacation and sick leave, and if any work will take place on a statutory holiday. Make sure to align this with both your family’s needs and provincial employment standards.
   1. Example Clarification: Update the statutory holiday list to include any new statutory holidays or changes in family-specific vacation that will affect your nanny’s schedule.
   2. Example Policy Change: If previously unpaid sick days will now be paid, or if you’re increasing the number of paid sick days, clearly outline these terms to avoid any confusion during the year.
5. Termination Conditions: Review and update the conditions under which the contract can be terminated, ensuring you are compliant with labour laws.
   1. Example Update: Should there be a need to adjust the notice period for termination (by either party), specify the new duration and any conditions under which immediate termination could occur.
   2. Example Addition: In cases where there might be performance-related concerns, outline a clear process for performance reviews and potential outcomes, including opportunities for improvement before termination is considered.

Legal Review and Signing

Once the updates are made, it’s a good idea to have the contract reviewed by a legal professional, especially if significant changes have been made. This ensures that the contract complies with local and federal laws, protecting you and your employee. After the review, have both parties sign the updated contract to make it official.

Conclusion

Updating your nanny or caregiver’s employment contract at the start of the new year is a chance to reset and renew the professional relationship you share. It shows your nanny or caregiver that you value everything they do for your household and are committed to their job satisfaction and well-being. All the best to setting the stage for another year of mutual respect and a stronger relationship with your nanny!

Share this article: