How to Legally End a Nanny’s Employment

To legally end your nanny's employment, you must have a fair and valid reason (like misconduct or redundancy), follow a fair procedure, and give the correct notice. For nannies employed for over two years, you must follow a formal process to avoid an "unfair dismissal" claim. For serious issues like theft ("gross misconduct"), you can dismiss them without notice, but you must still hold an investigation and hearing.

Ending a nanny's employment is one of the most difficult and emotionally charged parts of being a nanny employer. This person has been a huge part of your family's life, but circumstances change—your child might be starting school, or perhaps the working relationship has broken down.

Whatever the reason, it's crucial to remember that your nanny is your employee. You are an employer with legal responsibilities.

You cannot just "let them go." You must follow a fair and legal process to protect yourself from a complaint at an employment tribunal. This guide explains your legal obligations.

The 2-Year Rule: Why It's So Important

The most important factor in UK employment law is the "two-year service" mark.

• If your nanny has worked for you for less than two years, the process is simpler. You can end their contract without giving a long, formal reason, as long as you give them their proper notice period and the dismissal isn't for a discriminatory reason (e.g., related to their race, gender, or pregnancy).
• If your nanny has worked for you for more than two years, they gain the right to claim "unfair dismissal." This means you must have a legally valid reason and follow a full, fair procedure.

What is a "Fair Reason" to Dismiss a Nanny?

If your nanny has over two years' service, you can only dismiss them for one of the five "fair reasons" recognised by law. For nanny employers, they usually fall into these three categories:

1. Conduct

This is about your nanny's behaviour. It includes things like persistent lateness, unreliability, or breaking a house rule set out in their contract. For minor issues, you must give them formal warnings and a chance to improve before you can dismiss them.

2. Capability

This is about your nanny's ability to do their job. It could be that their performance isn't meeting the standards you agreed upon (and you have given them support and warnings), or it could be due to a long-term illness where they are no longer able to do the job.

3. Redundancy

This is the most common reason for nanny employers. Redundancy is when the job itself is no longer needed. It is not about the nanny's performance.

Common nanny redundancy scenarios:

• Your children are starting school, and you no longer need a full-time nanny.
• You are moving house.
• Your family's financial situation has changed, and you can no longer afford a nanny.
• You're on maternity leave with a new baby and will be at home yourself.

If your nanny has worked for you for over two years, you must pay them Statutory Redundancy Pay. This is a legal requirement. You must also hold a fair "consultation" process, which involves meeting them to discuss the situation and why the role is ending.

The Fair Dismissal Process (Step-by-Step)

If you are dismissing for conduct or capability, you must follow the Acas Code of Practice. This sounds formal, but it's a simple, logical process, even in a home setting.

1. Investigate: Look into the facts.
2. Inform in Writing: Send your nanny a letter or email clearly stating the issue and inviting them to a "disciplinary meeting." They have the right to be accompanied by a colleague or trade union rep (though this is rare for nannies).‍
3. Hold a Meeting: At the meeting, present the issues and let your nanny state their side. This can just be a formal, documented chat at your kitchen table.‍
4. Decide and Confirm: After the meeting, decide on the outcome. If you decide on dismissal, you must confirm it in writing, stating the reason and their notice period.‍
5. Give the Right of Appeal: You must offer them the right to appeal your decision.

Failure to follow these steps can make a dismissal "procedurally unfair," even if the reason was valid.

Notice Periods: How Much Do I Have to Give?

You must give your nanny at least their statutory minimum notice period.

• 1 month to 2 years' service: 1 week's notice‍
• 2 to 12 years' service: 1 week's notice for every year worked (e.g., 6 years' service = 6 weeks' notice)‍
• 12+ years' service: 12 weeks' notice

Check your contract! If your contract states a longer notice period (e.g., 4 weeks), you must give that. The law only sets the minimum.

You can also choose to pay them "in lieu of notice" (PILON). This means their employment ends immediately, but you pay them for the full notice period they would have worked. This must be handled correctly via payroll.

What About Gross Misconduct?

Gross misconduct is for very serious, severe behaviour that destroys the employment relationship. This is the only time you can dismiss a nanny "summarily"—that is, with no notice or pay in lieu of notice.

Examples include:

• Theft
• Endangering your child
• Serious breach of trust (e.g., lying about a DBS check)
• Being drunk or on drugs at work

Crucial: You cannot just fire them on the spot. You still have to follow a fair process. This means you should suspend them (on full pay), investigate the incident, and hold a formal hearing before making a decision.

The Final Payslip

When your nanny leaves, their final payslip must be correct. It must include:

• Their final salary up to their last day.
• Payment for any untaken holiday entitlement.
• Any statutory redundancy pay (if applicable).
• Any payment in lieu of notice (if applicable).

This is complex, but you don't have to do it alone

Managing a dismissal or redundancy is stressful. You're dealing with a difficult personal situation while trying to navigate complex employment law.

Our payroll service takes care of the financial side for you: We can calculate your nanny's exact final pay, including accrued holiday, notice, and any statutory redundancy entitlement. We provide the final, legal payslip, ensuring you are 100% compliant.

Fully digital, no paperwork, no stress.