Should nannies continue to work during COVID-19?

This advice is accurate as of 5 April 2020, and it includes the latest guidance provided by the Government on 4 April 2020. If the Government imposes stricter lockdown rules, then this may change.

The facts in summary:

Nannies can continue to work during COVID-19; as per advice of OFSTED; they do not fall under the same regulations as schools and nurseries or childminders
Nannies can travel to and from work, regardless of whether they work for key workers
Nannies may be eligible to be furloughed (if they are a PAYE employee), but the employer needs to initiate this; nannies are not automatically entitled to furlough leave
Employers will need to continue to pay nannies under furlough, but can claim up to 80% (up until £2,500 a month) of that salary back from HMRC. In other words, nannies do not get paid directly by the Government
If an employer puts a nanny on furlough, it doesn’t mean that her job is guaranteed after COVID-19
Nannies who are self-isolating or shielding can be put on furlough leave

This is not a “black and white” situation. Despite the legal guidelines that clarify that nannies can continue to work, both parents and nannies need to consider the comfort levels of the other party, and their social responsibility. No matter what you decide, both parties should feel comfortable with that decision. And the best way to achieve this is to have an open and continuous dialogue.

Government guidance

The Government has made it very clear who can and who cannot work during COVID-19, however the media, as well as some of the players in the childcare market, have unfortunately misquoted the guidance which has caused unnecessary confusion for parents and nannies alike.

The details of the Government advice can be found here and we have summarised the key points. At the moment, we can only leave the house for very limited purposes which include:

shopping for basic necessities, for example food and medicine, which must be as infrequent as possible
one form of exercise a day, for example a run, walk, or cycle - alone or with members of your household
any medical need, including to donate blood, avoid or escape risk of injury or harm, or to provide care or to help a vulnerable person
travelling for work purposes, but only if working from home is not possible

When it comes to nannies, the last bullet applies as nannies can’t work from home due to the nature of their work. Some people have confused the guidance out there and are thinking that it applies to key workers or people who are working for key workers only. If this was correct, it would have been stated clearly in the advice provided by the Government.

So, according to Government guidelines, nannies can continue to work, but there are other social considerations to bear in mind.

On nanny forums such as Facebook groups, we are seeing a lot of nannies and parents commenting that nannies should not be working as their work isn’t necessary, or essential. This is not only causing confusion, but also ill will and negative energy.

Nannies have a choice to work or not and if they are concerned about their health and want to shield or self-isolate, then sick pay or furlough leave should be an acceptable solution.

When it comes to furlough, it’s important to understand that this isn’t an entitlement of an employee. It is an agreement both parties need to accept. While the Job Retention Scheme is a very generous scheme, nannies cannot expect to be automatically and immediately enrolled into it. In fact, it’s only the employer that can enrol in it. The nanny benefits indirectly of course by keeping their job and at least some of her pay.

It’s important to note:

Nannies under furlough will not get paid directly by the Government; they will continue to get paid by their employer.
Nannies should also be aware that if they are put on furlough, this is not a guarantee that their job will be guaranteed after the outbreak.
When a nanny goes on sick leave or furlough leave, the employer may need a backup nanny during that time. It is not impossible that the backup nanny will stay in the job and the old nanny may not be needed anymore.

What is fair and what is right?

This brings us to the “softer” side of this story. What is fair and what is right?

We can’t tell nannies or parents what to do here, as only you will know what feels right for you. But here are a few considerations for nannies and their employers.

First, if a nanny doesn’t feel comfortable working under the current conditions, she shouldn’t be forced to. However, she also needs to recognise that it will put parents in a bind.

Parents may now be working from home, but their ability to keep working and earning a living is dependent upon their nanny being there to look after the children. Nannies should not expect to be continued to be paid during these circumstances if they are not working (unless furlough leave is agreed), especially when we’re looking at weeks, if not months of lockdown.

Compassion is needed on both sides. Nannies need to understand that it’s really hard to be a parent – the only 24/7 job you’re legally allowed to do without a break for years. Families need to appreciate that nannies often do not have savings and are often living from paycheck to paycheck. In this situation, the Government Job Retention Scheme, or furlough leave, could be the way to go.

Please refer to our FAQs for answers to some of the most frequently asked questions by nannies and parents, especially around furlough leave.

1. Are nanny employers entitled to the benefits under the job retention scheme, i.e. the furlough leave?

Yes, any employer with PAYE scheme as of 28 February 2020 is entitled to it. The Government has confirmed that on 4 April 2020, stating that “Individuals can furlough employees such as nannies provided they pay them through PAYE and they were on their payroll on, or before, 28 February 2020.

2. Who can be put on a furlough leave?

You can only claim for furloughed nannies that were on your PAYE payroll on or before 28 February 2020. Nannies hired after 28 February 2020 cannot be furloughed and claimed for in accordance with this scheme. Nannies can be on any type of employment contract, including full-time, part-time, agency, flexible or zero-hour contracts. Foreign nationals are eligible to be furloughed.

If you made your nanny redundant, or they stopped working for you on or after 28 February 2020, you can re-employ them, put them on furlough and claim for their wages through the scheme.

3. How much can nanny employers claim under the job retention scheme?

Nanny employers can apply for a grant that covers 80% of the nanny’s usual monthly wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that wage. It is understood that the £2,500 figure is a gross figure.

Example: Nanny’s annual salary is £38,000 or £3,167 per month. 80% of this salary is £2,533, but the Government will cover £2,500. The employer can cover for the difference, but they don’t have to.

Example 2: Nanny’s annual salary is £27,000 or £2,250 per month. 80% of this salary is £1,800, which the Government will pay in full. Again, the employer can cover the difference, but they don’t have to.

Income tax will be deducted from this salary as will any pension contributions by the nanny. Employers however will be able to claim their portion of the pension contribution as well as their NIC, but only on the subsidised wage.

4. Can nannies on furlough leave be working reduced hours?

If a nanny is working, but on reduced hours, or for reduced pay, they will not be eligible for this scheme.

5. What if your nanny is self-isolating or on sick leave?

If a nanny is on sick leave or self-isolating, they’ll be able to get Statutory Sick Pay. You cannot claim furlough leave grant for nannies while they’re getting Statutory Sick Pay, but they can be furloughed and claimed for once they are no longer receiving Statutory Sick Pay.

6. Are shielding nannies eligible for furlough leave?

You can claim for furloughed nannies who are shielding in line with public health guidance (or need to stay home with someone who is shielding) and you would otherwise have to make them redundant.

7. How about nannies with caring responsibilities?

Nannies who are unable to work because they have caring responsibilities resulting from coronavirus (COVID-19) can be furloughed. For example, nannies who need to look after their own children can be furloughed.

8. How about when a nanny has more than one job?

If your nanny has more than one employer they can be furloughed for each job. Each job is separate, and the cap applies to each employer individually.

Nannies can be furloughed in one job and receive a furloughed payment but continue working for another employer and receive their normal wages.

9. Is there a time limit on furlough leave?

Any nannies placed on furlough must be furloughed for a minimum period of 3 consecutive weeks. When they return to work, they must be taken off furlough. Nannies can be furloughed multiple times, but each separate instance must be for a minimum period of 3 consecutive weeks.

The scheme will run at last until the end of may 2020, however may be extended beyond that point.

10. What can nannies do when on furlough?

You cannot ask your nanny to do any work that either makes money for you, or provides services for you. Nannies can however take part in volunteer work or training.

11. Can nannies work for a different employer while on furlough?

If contractually allowed, nanny is permitted to work for another employer whilst you have placed them on furlough.

12. How and when can you claim under the job retention scheme?

Nanny employers of nannies on furlough leave will have to continue to pay their nannies, however they will be able to claim the grant from the Government through an online portal, which is expected to become operational by the end of April 2020. Importantly, nannies cannot claim this benefit directly from the government nor will they be paid by the Government directly.

13. I want to furlough my nanny, what should I do?

If you work with a payroll agency, follow their instructions. If not, you should first download our simple furlough agreement, complete sections in yellow and send it to your nanny to agree to it. Make sure you keep the signed copy for at least five year. Further instructions will follow once the online portal has been set up for claims.

You can find more information about nanny employment during CV-19 here, where we have answered your FAQs.

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