Thank you very much MBs. What about severance in that kind of situation? We don't have it in the contract. When we hired her we thought she would work for us at least 3 years. We had no idea she was a liar.
If you are firing her for cause, absolutely do NOT give her severance. That's like giving a reward to someone for forcing you to find a new nanny on no notice due to her bad behavior. Not to mention, it would further penalize you because you would be paying twice (severance for old nanny and wages for new nanny) because your present nanny is so bad you need her immediately out of your house.
It makes no sense to give more money to a bad nanny you need to fire.
If nannies want severance, they should not do anything worthy of firing. If the nanny were being laid off, that is different. She would be leaving through no fault of her own and should absolutely receive severance.