How much Severance or Parting Gift?

[Anonymous]

Unfortunately, I lost my job. We're keeping our nanny of 4 years for now, but if I don't find a job within a few months, we're going to have to part with her as we can't afford her on one income. We have in our contract that we'd give each other a month's notice. So how much of a parting gift should we give her? If the customary amount is 1 week's pay per year employed, the issue is, we can either afford to give her the parting gift or keep her on for an additional month, hoping things turn around for my job hunt in that time. (I don't have to find and start a job, but just secure an offer letter.) Which option would be better?

[Anonymous]

I would give her a month.

[Anonymous]

Are you saying you are decided between the following options:

Option 1. Give her notice now, keep her on for the next month (per the contract), and then give her a parting bonus of 1 month's salary.

Option 2. Keep her on for a month with no changes. If you don't have a job in a month, give her notice and pay her salary for the month. At the end of the month, you all part ways and she gets no parting bonus.

Are these the right options? It's hard to say which is better without knowing context. How long for you to find a new job? Do you have free/reduced cost care for the kids while you job hunt?

Once you give her notice, she's entitled to go find a job somewhere else. So if you think you'll be getting a job in the next month, I'd go with option 2 and hope that you don't need to give her notice at all.

Worse case would be that you give her notice, end up getting a new job but she's already gotten a new job herself and then you need a new nanny (unless that's appealing to you!)