Anonymous
Post 02/09/2015 10:19     Subject: Re:Severance Terms in Nanny Contract

Anonymous wrote:I have a question: If I intend to let my nanny go, effective immediately for just cause, do I still need to pay her severance even if the contract states all parties need to give a 6 week notice for termination? Can anyone advice me on that? I'm a first time parent. Thanks in advance.

Depends on your "just cause." What did she do?
Anonymous
Post 02/09/2015 10:17     Subject: Re:Severance Terms in Nanny Contract

I have a question: If I intend to let my nanny go, effective immediately for just cause, do I still need to pay her severance even if the contract states all parties need to give a 6 week notice for termination? Can anyone advice me on that? I'm a first time parent. Thanks in advance.
Anonymous
Post 03/24/2014 15:25     Subject: Severance Terms in Nanny Contract

OP - you got a lot of useful advice here - was it helpful?

(It's a pet peeve of mine when folks on these boards actually give thoughtful and helpful advice that isn't acknowledged. The endless rantings get tons of attention but thoughtful responses like these often seem to be ignored.)
Anonymous
Post 03/24/2014 10:39     Subject: Severance Terms in Nanny Contract

I would not agree to severance as just something that someone is owed from the start. I might agree to having a severance clause that kicks in after 6 months or a year of employment.
Anonymous
Post 03/22/2014 17:27     Subject: Severance Terms in Nanny Contract

In my experience, severance payments (as distinguished from a notice requirement) are not commonly part of nanny agreements. However, in other contexts, it is typical for the employer to provide either notice or a severance payment equivalent to whatever the employee would have earned if proper notice had been provided. So, if you agree to give her four weeks notice but for whatever reason can't honor that agreement, you pay her regular wages for whatever portion of the notice period you weren't able to honor.

You could add a proviso stating that if the nanny starts another job prior to the end of the notice period that you failed to honor, she forfeits whatever severance she would have been entitled to from and after the start date of her new employment. Keep in mind, though, that you probably won't have any way of knowing whether/when she has started new employment. You'd just have to hope that she is honest enough to come clean.

Contractual severance is completely different from choosing to provide a separation bonus or cash gift when you let a long-term nanny go because your kids have aged out of nanny care, you're moving, or the like.

If the nanny in your case insists on receiving a severance payment rather than or in addition to notice, you could agree on the condition that the provision is made reciprocal. In other words, if she leaves you without the agreed-upon notice, she has to pay the extra costs you incur to get backup care.

Anonymous
Post 03/22/2014 12:43     Subject: Severance Terms in Nanny Contract

We have a 4 week notice period in our contract. It is not technically severance but it functions similarly - the nanny gets 4 weeks of paid time to look for a new job. On top or that I will also pay my nanny a leaving bonus of at least 2-3 weeks salary, which I think is fairly standard.
Anonymous
Post 03/21/2014 18:02     Subject: Severance Terms in Nanny Contract

What do you think is fair, OP?
Anonymous
Post 03/21/2014 16:30     Subject: Severance Terms in Nanny Contract

"the contract with less notice. Severance is intended to cover unexpected layoffs. If you give her a month's notice to find a new job and she finds one immediately, she's not really out any income. I don't think it's common to contract to a notice period and severance (and it's not clear to me from the language she proposes that that is what she is actually asking for), although if she's been with you a while and you were happy with her, you may want to pay her a discretionary farewell bonus as a form of "severance.""

This
Anonymous
Post 03/20/2014 13:52     Subject: Severance Terms in Nanny Contract

I think its pretty common (and fair) to offer a mutual agreeable notice period of two to four weeks for either party to terminate with severance to be paid if the employer terminates the contract with less notice. Severance is intended to cover unexpected layoffs. If you give her a month's notice to find a new job and she finds one immediately, she's not really out any income. I don't think it's common to contract to a notice period and severance (and it's not clear to me from the language she proposes that that is what she is actually asking for), although if she's been with you a while and you were happy with her, you may want to pay her a discretionary farewell bonus as a form of "severance." As other PPs have said, you probably want to include a caveat that if she is fired for cause (and identify what cause is) she can be terminated immediately with no severance or notice.

Do you use a payroll company? Ours very helpfully sent us a few form contracts to work from.
Anonymous
Post 03/20/2014 13:45     Subject: Severance Terms in Nanny Contract

Anonymous wrote:Here is the language we have in our contract:

Notice of Termination:

If (nanny) decides to leave the position and terminate employment she is required to give one month’s notice of termination in writing.

If (employers) wish to terminate the relationship they must give (nanny) one month’s notice if her services will no longer be required. If the termination is the result of non-performance, failure to show up for work without notice, violation of the trust (for instance, theft) or jeopardizing the safety or well-being of the children, (nanny) may be terminated immediately without compensation.

I wouldn't regard your nanny's request to have language re termination as a negative - it's an opportunity to protect yourself as well as her. You can amend her requested language to allow for firing for cause, or make a longer term, or specify whether two week severance is in addition to two weeks notice. (I would consider her language vague - do I have to give her two weeks notice PLUS two weeks severance?)

It sounds like you're offering a very competitive, attractive package, and your nanny is experienced (and perhaps has been burned) so is approaching it professionally as well. Don't take that personally - she's a professional.

The more clear and thorough your contract is the more all parties are protected in the event of the relationship not working out. This is also the time to negotiate things cleanly and professionally, before the personal relationships you develop might make it tougher to have these conversations as impartially.


+1

We have almost the exact same wording in the working agreement that we negotiated with our nanny. The clearer all aspects of the working agreement are (including termination/separation) the better it is for both parties.
Anonymous
Post 03/20/2014 13:34     Subject: Severance Terms in Nanny Contract

I think she is just being professional and I would not worry about it.
Anonymous
Post 03/20/2014 12:35     Subject: Severance Terms in Nanny Contract

Our work agreement includes the following terms:

If employee decides to leave the position, notice of at least 4 weeks will be given. If less than 4 weeks notice is given any PTO balance if forfeited.

If the employee is terminated and termination is not for cause, then 4 weeks notice will be given by the family and any remaining PTO balance will be paid out upon termination. If notice cannot be given, one week's severance will be provided along with any PTO balance, with nanny remaining g at family's discretion.
Anonymous
Post 03/20/2014 12:30     Subject: Severance Terms in Nanny Contract

2 weeks severance is typical. Almost all of my nanny jobs have provided that. And if she gets a job right away good for her. But she is still owed the severance.

I had a job with a family and we signed a 6 month contract. I stayed 5 years until the youngest started kindergarten. I had months of warning the job would end as a nanny was no longer needed. The family gave me 4 weeks severance even though only 2 was in the contract.
Anonymous
Post 03/20/2014 12:30     Subject: Severance Terms in Nanny Contract

Here is the language we have in our contract:

Notice of Termination:

If (nanny) decides to leave the position and terminate employment she is required to give one month’s notice of termination in writing.

If (employers) wish to terminate the relationship they must give (nanny) one month’s notice if her services will no longer be required. If the termination is the result of non-performance, failure to show up for work without notice, violation of the trust (for instance, theft) or jeopardizing the safety or well-being of the children, (nanny) may be terminated immediately without compensation.

I wouldn't regard your nanny's request to have language re termination as a negative - it's an opportunity to protect yourself as well as her. You can amend her requested language to allow for firing for cause, or make a longer term, or specify whether two week severance is in addition to two weeks notice. (I would consider her language vague - do I have to give her two weeks notice PLUS two weeks severance?)

It sounds like you're offering a very competitive, attractive package, and your nanny is experienced (and perhaps has been burned) so is approaching it professionally as well. Don't take that personally - she's a professional.

The more clear and thorough your contract is the more all parties are protected in the event of the relationship not working out. This is also the time to negotiate things cleanly and professionally, before the personal relationships you develop might make it tougher to have these conversations as impartially.
Anonymous
Post 03/20/2014 12:22     Subject: Severance Terms in Nanny Contract

My nanny, with 10 plus years experience, would like to include severance terms in our contract and I'm just wondering what the norm is in the Bethesda/Chevy Chase area.

She works 40 hours at $18 hour to care for 2 kids, 1.5 and 3.5. We are providing $300 towards car and healthcare, 10 vacation days, 5 PTO days and 10 holidays (1 week to match our vacation at end of Dec.). She drives and does some light housekeeping as it pertains to the kids. I feel like we are being fair, and I was surprised that it wasn't enough. We would do the right thing if we ever decided to part ways, and as a stay at home mom I would give her ample notice (ie a month or more). I will probably go back to work soon, but not sure yet. We were upfront with her when we committed to a year.

She wants me to add the following line: "If employee elects to terminate the relationship, there should be two week notice to the employer. If the employer decides to terminate the relationship, employee should be paid a two week separation."

What's usually included in a contract regarding severance? If we gave her lots of notice and she found another job, would we still have to pay her severance?

Stefanie