No, you don't owe her vacation. If she's not a danger to your kids hire her replacement before you let her go.

You probably owe her the vacation technically. I can't picture a lot of people paying that out, though. Will she sue you for it to get it?

What's wrong with the "fit" OP? Or did you change your mind about what you want?

If you're in MD, at least, you are legally obligated to pay out that vacation unless your contract specifies otherwise. Don't do this again. Use an accrual method, or have a period before which there is no paid vacation (first couple of months).

If she truly is doing something that is really neglectful toward your minor child, I would just let her go and not pay her a dime. Someone shouldn't be paid for two weeks of not working if they did such a crummy job in the first place.

I don't know many blue collar jobs that pay its employees once they fire them.

This is why a 30-day probationary term is written into my contracts. Make sure to include that with your next nanny! (It just says either party can terminate the relationship in the first 30 days, and nanny is only entitled to pay for hours worked.)

Prorate vacation per month. So at 1 month that 6.67 hours you should cover

I can't believe you didn't have her accruing vacation! Don't make that mistake again EVER. Just give her one week of vacation.

Unfortunately, our gut instincts were off and we hired a nanny who just hasn't been a good fit with our family. We will likely be letting her go soon. Our contract with her requires two weeks notice for a not for cause termination, so I'm inclined to pay her out those two weeks. Our agreement also gives her two weeks vacation (one to be coordinated with our schedule) and doesn't discuss accrual. Any legal obligation to pay this out? Seems ridiculous given she started a few weeks ago. Thoughts?