How much of this years vacation has she used? I would pay out any unused vacation days that may have been accumulated since the start of this work year on a pro-rata basis. For example if your work-year starts in January, then your nanny has worked for 10 months this year, and has earned around 80% of her vacation. Has she used up at least that percentage of her allotted time off this year? If not, then I think it's fair for you to pay the remaining days out as a bonus. You wouldn't really be paying out anything more as she would have been within her rights to use that vacation time over the course of the past year. If she has used it up, then I think you're fine to stick with your current plan.

Since she did not abide by your agreement and give the agreed upon four weeks notice, I wouldn't give her any bonus.

And for the new nanny, I would say it would be too early to give her a huge bonus as well.

Perhaps a nice gift card for both of them, something along the lines of say...fifty dollars at most.

Anonymous wrote:16:03 makes excellent points about the many ways a long term nanny can ease a transition, if she chooses. Honoring the contractual notice period is the least/barest minimum of them.

No bonus is called for or remotely necessary in this instance OP.

+1. The gift and the stellar reference is plenty.