Nanny Furlough Guide

How to Apply for the Nanny Grant under the Coronavirus Job Retention Scheme

The COVID-19 pandemic has brought financial challenges to many families. Despite not needing nanny services, many are still obligated to pay their afterschool nanny . Fortunately, the government’s Coronavirus Job Retention Scheme allows families employing nannies to apply for a grant. Here’s how you can navigate this process:

Steps to Place Your Nanny on Furlough

1. Administrative Duties with HMRC:
– To furlough your nanny, you need to manage the necessary administrative tasks with HMRC.
– Alternatively, you can seek help from your afterschool nanny  or follow HMRC’s instructions.

If Your Nanny Refuses to Be Furloughed

1. HMRC Guidelines Compliance:
– Follow HMRC guidelines to avoid claims of unfair dismissal.
– Provide a valid reason for discontinuing their services, such as decreased income or the ability to care for your children while working from home.

2. Notice Periods:
– For nannies employed for two years or more: Provide a two-week notice period with a valid reason for termination.
– For nannies employed for less than two years: Follow the notice period specified in their contract, or if no contract exists, provide one week’s notice.

3. Alternative Solutions:
– If the nanny refuses furlough, consider termination, redundancy, or negotiating reduced hours and pay.

Providing a Severance Package

– Ensure your nanny has ample time to find new employment if made redundant.
– Initially, pay your nanny the furlough amount with assistance from afterschool nanny . The government will then reimburse you via a grant.

Furlough for Nannies with Multiple Part-Time Jobs

– Parents and employers of nannies with multiple part-time jobs can claim full furlough pay for their nanny.
– The second employer can also apply for a furlough grant.
– If one employer does not furlough the nanny, they may continue working in the other household.

Addressing Safety Concerns

– If your nanny works in another household, it may be unsafe for them to continue working in your home due to potential exposure to COVID-19.
– Consider furloughing your nanny to reduce the risk of exposure.

Salary Negotiations

– If your nanny’s monthly wage exceeds £2,500, negotiate a lower salary or cover the excess amount beyond the government subsidy.
– Nanny housekeepers can provide support during these negotiations.

Flexible Furlough

– From August, the furlough scheme allows nannies to work part-time while employers contribute to their salary. This offers more flexibility for all parties involved.

Nanny’s Job Search During Furlough

– Nannies can seek additional employment during furlough with your approval and as per contractual terms.
– They must be available to return to your service when needed and notify their second employer.

Nannies’ Furlough and Annual Leave

– Nannies can be asked to use their annual leave during furlough. They will still accrue holiday pay.
– Provide sufficient notice matching the length of the holiday they are expected to take.
– Ensure they receive full pay during their annual leave.

Live-In Nannies on Furlough

– If your nanny lives with you, it’s advisable they seek alternative accommodation during furlough.
– If no alternative is available, they must refrain from performing work duties while staying with you to avoid severe implications from HMRC.

Duration of Furlough

– Nannies can remain on furlough until October, as per the UK government’s policy introduced on May 14th, 2020.
– From late July, the government will reduce its reimbursement for furlough payments, and employers will need to contribute more.

Employer Eligibility for Nanny Furlough

– As of April 4th, the government included nanny employers in the furlough grant scheme.
– If you considered terminating your nanny’s employment due to changes in your employment, financial situation, or as a precautionary measure against COVID-19, you can now apply for reimbursement.
– The reimbursement amount will be either £2,500 or up to 80% of your nanny’s salary, including taxes and NI contributions, whichever is less.