How to Write a Perfect Nanny Contract- Essential Tips and Templates

Published: April 2, 2025

Alicia Garibaldi

A nanny contract is a great way to keep you and your nanny on the same page regarding responsibilities, expectations, vacation time, and pay. It’s an essential part of a family's care roadmap, where all those important details (like holiday celebrations, vacation time, and those unexpected sick days) are lovingly spelled out. 

If you’d like to skip all of the research —we've attached a ready-to-use Nanny Contract Template that covers all the essentials we’re about to cover. For more context on the steps and how to customize it to your family’s needs, keep reading. 

[TOC]What Is a Nanny Contract?

A nanny contract spells out all the terms of your working agreement with your household employee. A written agreement makes sure everyone stays on the same page after completing trials and the hiring process. 

[TOC]Do You Need a Contract for a Nanny?

Setting up a sound nanny contract makes sure you have everything written out for the terms of their employment and keeps everyone aligned. Here are some main benefits you want to consider when drafting a great contract with your nanny:

• No confusion or disagreements around payments or paid time off and holiday handling

• A clearly defined list of duties and responsibilities helps the nanny understand the scope of work, and you, as the employer, adhere to the agreed terms from the outset

• A forward look at how raises will be handled

• An outline of cell phone or mileage reimbursement

• Good confidentiality and terms if anything were to go wrong throughout the process

 

[TOC]9 Key Steps to Building a Nanny Contract

A nanny contract benefits both the family and the nanny by outlining clear expectations around pay, responsibilities, and other details. A really good contract also gives your family the flexibility they need regarding holiday travel and more.

Here are some details a nanny contract might include:

1. Nanny and employer contact information

2. Nanny job responsibilities 

3. Work schedule and hours 

4. Compensation and payment terms 

5. Nanny benefits and paid time off (PTO)

6. Tax and legal responsibilities (an employer’s obligation!)  

7. Termination clause

8. Non-disclosure agreement (NDA)

9. Contract amendments  

[TOC]Step 1: Nanny and Employer Contact Information

The first part of the contract should simply outline the basics about you and your nanny. You’ll want to include the following in this first section:

• Employer Information: Including the number and age(s) of children. 

• Nanny Information: Their social security number, name and address.

[TOC]Step 2: Nanny Job Responsibilities 

Think of your nanny as your family's daily superhero—their cape has many magical powers!  While 'tidy up the house' might seem straightforward, we all know there's a world of difference between a quick toy sweep and organizing the art supply tornado that just hit the playroom.

Let's get specific about those superpowers, shall we? For instance, 'handle doctor's appointments' could mean anything from being your kiddo's brave sidekick in the waiting room to giving you that crucial play-by-play phone update while you're stuck in a work meeting. It can also be a great idea to outline the family rules (like screen time) so parenting is consistent for your kids.

By mapping out the expectations around daily adventures, upholding family rules, and handling household tasks in more detail, your nanny can confidently navigate each day- whether coordinating impromptu playdates or managing surprise sniffles. 

Responsibility Differences by Nanny Type 

Different nanny types include live-in, part-time, full-time, or nighttime help. You’ll need to specify the type of nanny you’re hiring in the contract. You’ll also want to talk about whether you need support while traveling. Before you write a contract, outline the types of duties you need help with, and then find a nanny who can cover all of those responsibilities. 

[TOC]Step 3: Work Schedule and Hours

Creating a clear schedule for your nanny helps set up your nanny for success. Core scheduling elements are start and end times, expected hours, overtime coverage, and holiday needs. Other considerations could be school pickups and drop-offs, nap schedules, and any work commitments where you’ll be unavailable during the day. Make sure to build in check-ins with your nanny, and include meal prep and clean times to help your nanny plan out their day effectively. 

Lastly, build in overtime hours and flexibility within the contract to allow for seasonal changes that come with sports and other activities. 

How to Handle a Nanny Trial Period

It’s always a good idea to have a trial period before a contract is set in stone to make sure your bases are all covered on hours, schedule, and scope of work. Have a draft of your contract before the trial and make changes as needed. 

Once a trial has been successfully completed, you can outline days, hours, and the start date for your nanny in the contract. Nanny trial periods can be one day to a full week or month.

[TOC]Step 4: Compensation and Payment Terms 

Current data estimates that 98% of nannies are women, and many women struggle with pay conversations. Indeed, a leading job board highlights that more than half of women worldwide have never asked for a raise before. Wouldn’t it be nice to help your nanny with these conversations while also managing the household budget?

When it comes to compensation, your contract should include: 

• Base hourly rate, or if salaried, the hourly rate that is assumed within that salary

• Overtime pay rate

• Payment schedule

• Number of regular and overtime hours expected in a pay period

• Bonus eligibility

• Annual or bi-annual raise eligibility

Including a note on raise eligibility in the contract demonstrates your commitment to fair compensation and improves the chances of the long-term retention of your nanny.

[TOC]Step 5: Nanny Benefits and Paid Time Off (PTO)

Here are some key benefits to include in your contract:

• Vacation days and paid time off (PTO): Make sure your nanny feels supported with planned breaks to recharge and maintain a work-life balance.

• Sick leave: Provide paid sick days so your nanny can prioritize their health without financial worry.

• Public holidays: Offering paid holidays recognizes their hard work and aligns with family values.

• Health insurance: Show your long-term investment in their well-being by contributing to or covering health insurance.

• Workers’ compensation insurance: Protect your nanny and your household by ensuring coverage for work-related injuries or illnesses. Consider using Bhalu for streamlined support with your workers’ compensation needs.

• Mileage reimbursement: If driving is part of their responsibilities, reimbursing mileage is a fair way to cover travel costs.

• Professional development allowance: Support their growth by funding training or certifications that enhance your nanny’s skills.

Each of these benefits not only makes your offer competitive, but also strengthens the trust and commitment in your working relationship.

[TOC]Step 6: Tax and Legal Responsibilities (An Employer’s Obligation!)

Taxes are one of the only certainties in life, but that doesn’t mean they’re straightforward. The more you can simplify taxes for your nanny, the better. Be sure to mention to your nanny that you’ll be withholding taxes from their paycheck, so they know what to expect. This helpful article includes all of the steps you’ll want to follow to get your nanny set up to be paid legally in your state. 

Tax responsibilities can vary depending on where you live, but don’t worry—we’ve created a handy resource on Nanny Tax Rules by State to make things easier for you.

[TOC]Step 7: Termination Clause 

No one likes to think about a situation where a nanny might quit or is not the right fit. You should still plan for this worst-case scenario in your nanny contract so you and your nanny have a professional process to lean on. A termination clause helps solve this. 

Here are some of the factors your nanny termination clause should include to make sure you both are covered:

• At-Will Employment: This can vary by state.  State Department of Labor websites often provide this guidance on employment laws or any state-specific exceptions to at-will employment. A legal counsel can also give you this information. 

• Notice Period: How much notice will you both need to repeat an interview process and line up new care in case you need it? For some, that could be a month or more, to be reasonable.

• Termination for Cause: This section outlines situations requiring immediate action, such as safety concerns or significant policy violations. Think of it as your family's safety net, protecting everyone's best interests. 

• Severance Pay: This area is a great place to show appreciation for dedicated service by outlining a fair goodbye package. This might include details about final paychecks, unused vacation time, or additional compensation based on length of service.

[TOC]Step 8: Non-Disclosure Agreement (NDA)

Maintaining privacy and clear boundaries is key in any working relationship, especially when it involves your family. Just as you wouldn’t want a friend sharing photos of you without permission, it’s important you and your nanny agree on what’s acceptable to share and what should remain private. Here are some areas that you’ll want to include in your Non-Disclosure Agreement (NDA):

1. Confidentiality: Think of this as your family’s protective bubble. A good NDA makes sure those sweet family moments and milestones are within your circle to share. This could include household financial details, photos of your kids, and anything they observe during working hours that you’d rather not be shared.

2. Social Media Policy: In today’s “share everything” world, clear social guidelines are a must, including exposing locations or mentioning family members in posts.

3. House Rules: This area addresses specific family rules and a brief overview of any timeout rules you have. If you have a dog or a pool, mentioning the relevant rules for them is a must in terms of liability. Make sure your nanny knows what’s permitted while they're working, including visitors, phone use, and even smoking and drinking.

[TOC]Step 9: Contract Amendments

Parenting and caregiving is a constant juggling act of changing priorities. By leaving room for contract amendments, you and your nanny can adapt care to the different stages of childcare over the years. 

 

[TOC]Common Mistakes to Avoid When Drafting a Nanny Contract

Don’t let these common oopsie moves trip up your agreement:

• Don’t be vague around responsibilities—swap terms like “tidying up” with specific cleaning tasks and processes

• Don’t skip the what-if scenarios, like the unexpected doctor’s visit or sick day

• Don’t forget to add some flexibility as your kid grows and needs change

• Don’t miss state-specific requirements since they all tend to abide by their rulebook

• Don’t leave out an opportunity for review periods and raise discussions

Pro Tip: Sit down with your nanny quarterly to keep an open dialogue on how things are going to ensure their, your kids’, and your success!

Are Nanny Contracts Legally Binding? 

Nanny contracts are legally binding when signed by both parties. Your nanny contract is more than just a friendly handshake; it can protect everyone involved.  This is why it’s important to be clear, specific, and in line with all state laws that apply to your agreement. 

Be sure to review Poppins Household Employer Resources or IRS.gov resources to check compliance with all employment taxes for household employees.

 

[TOC]Get Started with our Free Nanny Contract

Now you’ve got all the ingredients for a fantastic nanny agreement! Remember, this isn’t just paperwork—it’s the foundation for a fantastic caregiving journey!

Ready to put it all together? Download our free nanny contract template to start your journey to a great working relationship today!

And once you’re done with the contract and ready to hire your nanny, you can use Poppins Payroll to legally pay your nanny. Legal payroll gives your nanny the ability to access unemployment benefits while protecting you from the IRS. 

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The content of this article is general and informational in nature and may not be appropriate for your specific circumstances. The information is not intended to provide legal or tax advice, and should not be relied upon without consulting with an attorney and/or tax professional.