The Coronvirus Job Rentention Scheme and how to obtain the furlough for my nanny grant under this 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 childcare 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 cornonvirus job retention scheme to receive a grant. Below we answer your questions about this scheme.

Am I eligible as an employer of a nanny to furlough my nanny?

On April 4th the Government announced nanny employers would be eligible for the furlough grant scheme or the Coronavirus Job Retention Scheme. This means if you would have otherwise taken a decision to make your nanny or home based childcarer redundant due to your own employment, financial situation changing, or simply to protect your family or nanny from the spread of COVID-19, the Government will reimburse you either £2500 or up to 80% of your nannies salary including taxes and NI contributions, whichever is the lesser amount.

How long can my nanny or childcarer remain furloughed?

As COVID-19 cases slowly decline the government is taking a soft approach to employees returning to work. The most recent policy as of May 14th 2020 from the UK government states that your nanny or childcarer may remain on furlough until October however at the end of July the amount the government will reimburse you for the furlough payments to your nanny will be reduced. At this time the employer of the nanny will become responsible for a greater proportion of the furlough payments.

What if my nanny lives with me? Can I still furlough them?

If your nanny still lives with you ideally they should move to another address during their furlough. If they have no where else to live then they can stay with you but they must not undertake any work for you. The consequences should you be reported to HMRC under such circumstances are severe.

Furloughing my nanny and their annual leave

Yes you can require your nanny to take holiday during furlough. You must provide your nanny as much notice as the length of the holiday s/he will be required to take. For example if the holiday period is two weeks you must give your nanny two weeks notice of this holiday. Please note – if a nanny takes annual leave during furlough you will have to compensate them 100% of their pay. Nannies will also accrue holiday pay during furlough.

Can my nanny get another job whilst on furlough?

Yes, your nanny can work for another employer whilst on furlough provided you agree to this and her or his contract allows for this. It is important to consider that whilst on furlough, if you have agreed this with your nanny, your nanny or childcarer may not be earning their full salary. Their ongoing living costs such as rent may not be reduced and they may need to find alternative employment to compliment their furlough salary. Taking another job whilst on furlough a nanny must ensure they can return to your employment when you decide to bring them back. They must inform the 2nd employer and complete Statement C on the new starter checklist their employer provides them.

You may feel uncomfortable with your nanny returning to work immediately following being employed elsewhere due to the possible contact with COVID-19. Little Ones are able to arrange COVID-19 testing should you require via a 3rd party partner.

When the government furlough reduction comes into place can my nanny work fewer hours and I still receive the furlough grant?

From August the furlough scheme will enable more flexibility. Nannies and childcarer will be able to return to work part time and you as their employer will be required to contribute more to the salary.

How do I furlough my nanny?

The process of furloughing your nanny requires some amount of admin with HMRC. Little Ones can take care of this for you alternatively you follow the steps set out by HMRC here.

What if my nanny doesn’t want to be furloughed?

If your nanny or childcarer refuses to be furloughed, depending on the circumstances, you could let them go or follow the steps set out by HMRC to make your nanny redundant. Alternatively you could try to negotiate working fewer hours with a lower pay.

If your nanny has been in your employ for fewer than two years you can dismiss them with notice in accordance with their contract. If there is no written contract in place the dismissal should come with one weeks notice. If the nanny has been employed for two years and you have cause for dismissal the period of notice should be two weeks. It is important you have reasonable cause to dismiss your employee if they do have more than two years service as they have more rights than a nanny employed for fewer than two years.

If you choose to follow the redundancy path HMRC https://www.gov.uk/staff-redundant provides a step by step guide to making your employee redundant.

Redundancy is a last resort and you must follow the steps exactly set out by the HMRC to ensure your nanny has not cause to claim unfair dismissal. You must provide a valid reason why you no longer need your nanny. This could be because your own income has been diminished or because you are now working from home and can care for your children yourself.

A few of the steps towards redundancy include holding a meeting with your nanny to explain the situation and offering them the opportunity to take voluntary redundancy.

You must offer a redundancy pay of:

• 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

You must provide adequate time for your nanny to find alternative employment in the case of redundancy.

Does the government pay me or my nanny?

You will first pay your nanny the furlough amount. Little Ones will assist with calculating this amount. The government will the following month reimburse you through a grant into your bank account.

When will I receive my nannies furlough money from the government?

Furlough payments for our nanny employer clients have been arriving promptly into their accounts within the month following each payment. To ensure furlough you receive your nannies furlough payments it is very important that the correct submissions have been made on time to HMRC. Should you not complete the correct forms and submissions payments will not be made to you by HMRC. Again Little Ones are able to assist with this administration process.

What if the furlough compensation doesn’t cover my nannies salary?

The maximum gross monthly allowance from the government is £2500 which is approximately £420 per week or £1820 per month. Full time nannies earn more than this. If your nannies gross monthly salary is higher than £2500 you will have to negotiate with him or her to accept a reduction in salary or you will have to pay the remaining amount to your nanny which is over and above the £2500 government grant. If you would like further information on how to negotiate this with your nanny Little Ones may be able to assist.

If my nanny has two part time jobs can s/he receive two furlough payments?

Parents and employer of nannies and childcarers with multiple part time jobs are able to claim full furlough pay for their nanny. The nanny’s second employer may also request a grant through the furlough scheme to pay the same nanny or childcarer. The nanny’s second employer may not wish to furlough them so s/he may continue working in another household.

If your nanny works in another household you may consider it unsafe for her to attend work in your home as s/he may be in contact with many different individuals in the other home, the travel to the two work places will also put your nanny in contact with multiple people which increases the risk of coming into contact with the coronavirus. This is another good reason to request your nanny accepts to be furloughed during the pandemic.