Nanny Furlough
What is the process for applying for the nanny grant under the Corona Virus Job Retention scheme?
The COVID-19 pandemic has put many of us in difficult financial positions. To add to this stress many families are having to continue to pay for Nanny housekeepers at home even though they no longer require the help. Fortunately, the government announced on April 4th that families employing nannies will be eligible under the coronavirus job retention scheme to receive a grant.
We will now address your inquiries regarding this program:
How can I place my nanny on furlough?
To place your nanny on furlough, you will need to handle the necessary administrative tasks with HMRC. Alternatively, your nanny housekeeper can assist you with this process, or you can follow the guidelines provided by HMRC.
What happens if the nanny is not willing to be placed on furlough?
In the event that the nanny expresses unwillingness to be furloughed, it is important to adhere to the guidelines provided by the HMRC to ensure that the nanny does not have grounds to claim unfair dismissal. It is necessary to provide a valid reason for no longer requiring the services of the nanny. This could be due to a decrease in income or the ability to personally care for your children while working from home.
If the nanny has been employed for a duration of two years or more and there is a justifiable reason for dismissal, a notice period of two weeks should be given. It is crucial to have valid grounds for dismissing an employee with over two years of service, as they possess more rights compared to a nanny employed for less than two years.
For nannies employed for less than two years, they can be dismissed in accordance with the notice period stated in their contract. If there is no written contract in place, one week’s notice should be provided for dismissal.
If the nanny or nanny housekeeper refuses to be furloughed, the appropriate course of action would depend on the circumstances. It may be necessary to terminate their employment or follow the steps outlined by the HMRC to make the nanny redundant. Alternatively, it could be possible to negotiate a reduction in working hours and a corresponding decrease in pay.
You are required to offer a redundancy pay off to your nanny based on the following criteria:
– 1.5 weeks’ pay for each full year of employment after their 41st birthday.
– A week’s pay for each full year of employment after their 22nd birthday.
– Half a week’s pay for each full year of employment up to their 22nd birthday.
Additionally, it is important that you provide sufficient time for your nanny to find alternative employment in the event of redundancy.
Regarding the payment, you will initially pay your nanny the furlough amount, which will be calculated with the assistance of nanny housekeepers. The government will then reimburse you through a grant into your bank account in the following month.
To ensure that your nannies receive the money from the government, it is crucial to submit the correct forms and submissions to HMRC on time. Failure to do so may result in non-payment by HMRC. However, we can assist you with this administrative process. Nanny employer clients have been receiving their furlough payments promptly within the month following each payment.
If nannies hold two part-time positions, are they eligible for two furloughs?
Parents and employers of nannies and Nanny housekeepers with multiple part-time jobs are eligible to claim full furlough pay for their nanny. The second employer of the nanny can also apply for a grant under the furlough scheme to compensate the same nanny or Nanny housekeepers. If the nanny’s second employer chooses not to furlough them, the nanny may continue working in a different household.
If your nanny is working in another household, it may be deemed unsafe for them to come to work in your home due to potential exposure to various individuals in the other household. Additionally, commuting between the two workplaces will increase the likelihood of your nanny coming into contact with multiple people, thus raising the risk of contracting the coronavirus. This serves as another valid reason to consider requesting your nanny to agree to being furloughed during the pandemic.
What if the furlough compensation is insufficient to cover the salary of my nanny?
Full-time nannies receive higher compensation than this. In the event that your nanny’s monthly salary exceeds £2500, you will need to engage in negotiations with them to agree on a reduced salary or cover the additional amount that surpasses the £2500 government grant.
If you require additional guidance on how to navigate this negotiation process with your nanny, Nanny housekeepers may be able to provide assistance. The government’s maximum monthly allowance is £2500, equivalent to approximately £420 per week or £1820 per month.
Is it possible for my nanny to work fewer hours and for me to still receive the furlough grant when the government implements the furlough reduction?
Starting in August, the furlough scheme will allow nannies and Nanny housekeepers workers to resume part-time work, with employers being obligated to increase their salary contributions. This change will provide greater flexibility for both parties involved.
Can my nanny seek employment elsewhere while on furlough?
Your nanny can work for another employer while on furlough, provided that you give your consent and their contract allows for it. It is important to note that their living expenses, such as rent, may not be reduced during this time. If they choose to take on additional employment to supplement their furlough salary, they must ensure that they can return to work for you when needed. They should inform their second employer and complete Statement C on the new starter checklist provided by their employer. Keep in mind that while on furlough, your nanny or Nanny housekeepers may not be earning their full salary if you have agreed to this arrangement.
Furloughing and annual leave of nannies:
During the furlough period, it is permissible to request that your nanny takes annual leave. Nannies will continue to accumulate holiday pay while on furlough. It is essential to give your nanny advance notice equivalent to the duration of the holiday they are expected to take. For instance, if the holiday spans two weeks, you must inform your nanny two weeks in advance. It is important to highlight that if a nanny opts to take annual leave while on furlough, you are obligated to provide them with full compensation amounting to 100% of their pay.
Is it possible for me to still place my nanny on furlough if they reside in my household?
If your nanny lives with you, it is advisable for them to find another place to stay during their furlough. However, if they have no other option, they can stay with you but should not carry out any work. It is crucial to understand that the repercussions of being reported to HMRC under such circumstances can be serious.
What is the duration for which they can stay on furlough?
The latest policy issued by the UK government on May 14th, 2020 allows for nannies or Nanny housekeepers to continue being on furlough until October. Nevertheless, starting from the end of July, there will be a decrease in the amount that the government will reimburse for the furlough payments made to nannies. Consequently, the employer of the nanny will then be required to cover a larger portion of the furlough payments.
Can I furlough my nanny as an employer if I am eligible?
The Government made an announcement on April 4th regarding the inclusion of nanny employers in the furlough grant scheme or the Coronavirus Job Retention Scheme. This implies that if you had considered terminating the employment of your nanny or home-based Nanny housekeepers due to changes in your employment or financial circumstances, or as a precautionary measure to safeguard your family or nanny from COVID-19, the Government will provide reimbursement. The reimbursement amount will be either £2500 or up to 80% of your nanny’s salary, including taxes and NI contributions, whichever is lower.