Employers to ensure live-in workers receive national minimum wage under new regulation

As all working parents whether as an employer or employee know finding good, reliable, and affordable childcare is one of the biggest parental headaches.

Employers to ensure live-in workers receive national minimum wage under new regulation

Of course, employers have extra responsibilities towards their employees in terms of managing absences caused by a breakdown in childcare arrangements. Both childminders and nursery placements won’t accept children with a variety of ailments from sickness bugs to common childhood illnesses such as chicken pox so what rights do parents have? 

The most usual arrangement is for one parent sadly still usually the mother,  to take time off for a dependent emergency which is unpaid leave to allow them a day or two to put alternative care in place. Sometimes parents confuse the amount of time allowed and think it covers the entire time the child is unwell. There is also parental leave which again is unpaid. With this parents are entitled to take up to 18 weeks leave per child up to their 18th birthday but the maximum in any one year is four weeks. As both these provisions are unpaid some parents choose to take part of their holiday entitlement instead. Whichever option they choose there is no denying the impact of the disruption unplanned absence causes to the business. 

With this in mind and with the current shortage of nursery and childminder places many parents have looked at finding live-in care such as nannies and au pairs as a more cost-effective solution. Not having a set drop off and pick up time for commuters does mean less stress and gives more flexibility. This was also particularly beneficial as there was an exemption allowing employers not to pay minimum wage if the person was genuinely treated as one of the family. 

The exemption was introduced in 1999 mainly to support au pairs seeking a cultural exchange by living with a family in the UK. In return for accommodation, they would perform light household and childcare duties.  However, too often the exemption resulted in the exploitation of domestic workers. In 2021 the Low Pay Commission recommended that the au pair model no longer worked particularly after Brexit immigration laws limited access and that the law should be changed. So although employing an au Pair or live-in nanny remains an option as of April 1st 2024 they will now be entitled to the National Minimum Wage and National living wage. Like all employees, they are entitled to a contract of employment on day one and all statutory entitlements such as holiday. Whilst we always recommend taking references and having a Disclosure and Barring Service check  It is also a good idea to have them registered with Ofsted too as you may be able to get help with the costs as the Government increase the access to free childcare.

ABOUT THE AUTHOR
Sue Tumelty
Sue Tumelty
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