The moment you hire a nanny, you become a household employer in the eyes of the IRS. That comes with real obligations: payroll taxes, overtime rules, and a line between an employee and an independent contractor that you don’t get to draw casually. Most first-time families don’t learn this until something has already gone wrong.
A written agreement is how you get ahead of it. WordLayouts’ free nanny contract template gives you an editable starting point for laying out pay, hours, duties, and time off in plain terms, so you and your nanny settle the arrangement before day one instead of arguing about it later.
A Nanny contract is a legally binding agreement between a nanny and a family that outlines duties, schedule, and pay. Once signed, a Nanny Contract acts as a permanent written record of the terms and conditions of the childcare services provided by a nanny in exchange for payment.
Why Do I Need a Nanny Contract?
Like any other professional service you hire, it’s a good idea to have core contractual terms set out in writing. Clear expectations and guidelines from the start can help you avoid misunderstandings or disputes down the line.
Overall, a nanny contract is designed to create a safe and positive environment for both parties. Families can ensure that their children receive the best possible care, while nannies can feel confident that they are being treated fairly and paid properly.
Do nannies classify as employees or independent contractors for legal and tax purposes?
This is an important discussion to have. Traditionally, a nanny who works regular hours in the family’s home and follows the family’s instructions will almost always qualify as a household employee – not an independent contractor.
That said, courts or tax authorities ultimately base their decision on the specific working arrangement in each case, not simply based on what the contract says. The IRS typically uses the following ‘control tests’ to decide the nature of the relationship between a nanny and the employer:
- Schedule,
- Duties
- Methods of work
- Household rules
- Childcare procedures
Why this matters: Because household employees are usually entitled to employment benefits such as minimum wage and overtime pay that independent workers are not.
What’s Inside a Nanny Contract?
The specifics of a nanny contract may vary, but there are some standard information fields & legal clauses you’ll find across most contracts.
A Nanny Contract typically covers the following:
- Personal details of both parties
- The nanny’s responsibilities & daily routines
- The child’s routines & needs
- The work schedule
- Payment structure & other benefits (if any)
- Leave and/or overtime work policies
- Child safety and confidentiality terms
- A termination clause
- Any other special requirements for the nanny’s role
- Boilerplate clauses (explained at the end)
Free Nanny Contract Template
Our contract is carefully worded to minimize room for ambiguity or confusion. It comes with a free user guide explaining the meaning and purpose of each clause. This way, you can develop a better understanding of the legal, professional, and financial commitment you are walking into.
This template closely follows the sample contract provided by the US Department of Labor. It includes all essential clauses and can be edited easily to tailor it to your particular situation.
Clause-by-Clause Guide for a Nanny Contract Template
As promised, here’s a clean user guide that breaks down the entire nanny contract for you, one clause at a time.
But before going into specific legal clauses, you must add the following information:
Date: Specify the date when the nanny agreement is signed. This is important because all contractual obligations and rights shall be effective as of this date.
Parties’ Information: Clearly identify both parties to the contract—the Nanny and the Employer—by adding their:
- Full legal names, as they appear on government-issued IDs (such as a passport or a driver’s license)
- Complete postal address. Be sure to include street number, building or lot number, and ZIP code.
I. Children
It is important to clearly identify the children being cared for by a nanny under the contract.
Carefully write down the names & dates of birth. This way, there is no confusion or ambiguity about the nanny’s scope of responsibility.
II. Nanny type and housing arrangement
Taking care of a child is a full-time responsibility. So it’s common for nannies to live in the same house as the employer and the children. But this is not ALWAYS the case.
To bring clarity to this, specify the type of working and living arrangement that works for you: a live-out or live-in in this section of the template.
In both cases, the nanny must maintain a clean living space and respect the privacy and property of the Employer’s household.
If you opt for a live-in arrangement, be sure to clearly specify what the accommodation includes, such as a private room or bathroom access.
III. Location of services
Specify the exact physical location where the nanny is expected to provide childcare services. This is typically where the children live.
Make sure the following details are covered:
- Street name/number
- Building or lot number
- City or town
- State
- Zip code
What if the children’s main place of residence changes?
If the employee decides to permanently or temporarily move to a new home, the nanny must be duly informed in advance (in writing).
IV. Schedule
Every nanny job requires a set schedule. Use this part of the contract template to identify the working hours of the nanny for each day of the week. Then carefully add these up to determine the total number of hours a week the nanny is expected to work for the employer.
What if the employer wants to change the schedule or wants the nanny to work extra hours?
If a parent or guardian wants to change the nanny’s work schedule, they must do so by providing reasonable notice to the nanny. But the nanny has the final say here and may accept or reject the request for a change in schedule based on their availability.
V. Services and responsibilities
This is arguably the most defining clause of a nanny contract. To avoid confusion later on about what the nanny must do, you must be as clear and specific as possible about the nanny’s responsibilities from day one.
Tasks or services typically included:
- Feeding, bathing, and dressing the children
- Managing nap times and daily routines
- Overseeing their playtime and study activities.
- Ensuring their safety and well-being.
Is the nanny also responsible for services that are not directly related to the children? Additional Household duties, such as cooking and light housekeeping, may also be included if both parties agree to do so.
What must the Nanny never do?
Keeping children safe is the most fundamental part of a nanny’s job. The nanny shall NOT:
- Leave the child(ren) unsupervised
- Allow an unauthorized individual to access the premises
- Allow an unauthorized individual to be in the presence of the child(ren)
VI. Compensation
Let’s move on to salary and payment details. This clause in the template sets out the complete payment structure for the nanny’s services: Payment Amount, Schedule, and Method.
- Amount: Specify how much the nanny will be paid per hour, week or month, depending on the working arrangement that suits both parties.
- Schedule: Indicate how often the nanny will be paid. Our default options allow for daily, weekly, or monthly payouts. For a custom arrangement, use the ‘Other’ option.
- Method: Choose a method for transferring money that works for both parties. Will the employee pay in cash, via check, or through an ACH transfer? Ideally, select one of these options to prevent confusion or duplicate payments.
VII. Overtime
If the employee wants the nanny to work beyond the schedule set above, they must be ready to pay extra. Specify the overtime pay rate in the blank space provided.
In the United States, most nannies are covered by the Fair Labor Standards Act.
- Live-out nannies are generally entitled to overtime (typically 1.5× pay) for hours worked beyond 40 per week.
- Live-in nannies must receive at least minimum wage, but overtime rules can differ by state.
Does the nanny have a right to refuse to work overtime?
Absolutely. This contract gives nannies the right to decline overtime requests due to prior commitments or personal unavailability
Make documented overtime hours in the Nanny’s regular timesheet for accurate payroll processing. Use our free Paycheck Calculator to make sure your employees are paid correctly, consistently, and in compliance with the law.
VIII. Leave entitlements
As household employees, nannies may be entitled to minimum wage and overtime protections under applicable law. However, paid vacation, sick leave, and holiday pay are not generally required under federal law and may instead depend on state or local laws or the terms agreed upon in the contract.
To help both parties clearly document these arrangements, our template provides multiple leave options that you can select and customize based on your specific working relationship and applicable legal requirements.
IX. Holidays
For families with kids, holidays can be one of the busiest times of the year. Having the nanny around the house can certainly take some weight off your shoulders.
But which holidays are the nanny expected to work? Also, is that work paid or unpaid?
The contract template lists federal holidays such as New Year’s Day or Christmas. Check the specific ones where you expect the nanny to work. Then indicate whether the work will be paid or unpaid.
X. Other benefits
Depending on the type of professional relationship the employer is seeking, the nanny may also receive additional benefits & allowances beyond a salary. If the nanny is treated as a regular employee, they are eligible for benefits such as health insurance, etc. If the nanny is hired as an independent contractor (or freelancer), they are typically not entitled to the same benefits or allowances.
Check the benefits that apply to your working arrangement. Describe each benefit clearly to avoid confusion about what’s covered and how much money or assistance is owed to the nanny.
XI. House rules
Every household is different. While some ask you to leave your shoes, cigarettes, and pets at the door, others are more relaxed. That’s why you establish clear house rules related to the nanny’s behavior and conduct while on the job—such as dress code, smoking policy, and use of personal devices.
XII. Emergency procedures
What happens in case of emergencies—say, there’s a fire, a power outage, or any violent threat? Is the nanny legally bound to take action? Yes.
This clause requires the nanny to:
- Contact the Employer immediately
- If the situation requires urgent medical or safety intervention, call 911 without delay.
- If the Employer is unreachable, reach out to the designated emergency contacts
Identify emergency contacts
Space is provided for 2 emergency contacts. You can add more if needed.
Authorizing medical treatment for entrusted children
In the event that a child gets injured at the park, develops a sudden allergic reaction, or falls seriously ill, this clause also gives you the option to legally authorize a nanny to seek medical treatment for the children.
This nanny contract can also be used alongside our daycare emergency contact form, which isn’t just for daycares and works just as well for nanny care. It gives a more complete record of emergency contacts and also includes important medical details, helping everything stay clear and easy to access when needed.
XIII. Allergies
A nanny must know if a child under their care has any allergies and how to manage them. The template features a dedicated section to include any such information.
What you need to do
- Indicate whether the child(ren) have any known allergies.
- If yes, list each child along with their specific allergies.
What each party is responsible for
It is the Employer’s job to provide the nanny with clear written instructions on how to manage these allergies, including:
- Foods or substances to avoid
- Medications and how to administer them
- Steps to follow in case of an allergic reaction
It is the nanny’s job to follow instructions carefully and inform the employer if there is any allergic reaction or suspected exposure.
XIV. Transportation
If the nanny’s work involves traveling, it is good to know beforehand that there are travel expenses. This ensures both sides are clear on travel responsibilities and cost handling.
Want to keep things organized and well-documented? Use an editable Mileage Reimbursement Form to properly record all travel expenses of your household employee.
XV. Termination
Specify how the employment relationship under the nanny contract can end. Our framework stipulates two ways of terminating a contract. Check all boxes that apply in your case.
- Automatic. Contract ends on a fixed date (to be specified by the user). Parties NOT required to provide notice in advance.
- Termination by Either Party: Contract ends if one party provides a written notice of termination to the other. Parties must specify the notice period.
For any termination method other than the ones listed, use the ‘Other’ option.
XVI. Grounds for immediate termination
Do certain circumstances give employers the right to end the contract immediately, that is, without the need for a written notice?
Yes, a clause like this is sometimes needed to protect the well-being of the child(ren) and maintain the integrity of the working relationship. We recognize the following 8 grounds for immediate termination. Feel free to replace or add other legal grounds as you deem fit.
XVII. Representations
A representation clause isn’t just formality; it sets a baseline of trust and gives both sides legal protection.
Under this contract, the nanny confirms that all provided information is accurate and truthful; any false or misleading details can lead to immediate termination. The family may conduct background or reference checks at any time and can terminate the agreement if the results raise concerns about suitability, subject to applicable law.
XVIII. Tax obligations
For legal and tax purposes, it is important to clearly address issues such as taxes and payroll.
IRS classifies nannies as household employees. However, in certain situations, they can also be classified as independent contractors. Check the IRS website for a proper understanding of classification.
This contract template includes options for both situations. Choose the one that is applicable in your case.
Why this matters:
- If the nanny is treated as a household employee, the Employer must withhold taxes (Social Security, income tax, etc.) on behalf of the nanny. The Employer must issue a Form W-2 to the Nanny at year-end, as required by law.
- Nannies working as independent contractors are responsible for filing their own taxes. If total payments to the Nanny exceed $600 a year, the Employer may issue a Form 1099-NEC in accordance with IRS requirements.
XIX. Confidentiality
Trust is the cornerstone of a nanny’s work. Exposing a child’s identity, leaking sensitive information about the family, or misusing access to personal social media accounts are all major breaches of a nanny contract.
Our standard confidentiality clause makes it clear that any such breach of trust can result in the contract ending right away.
Information you might want to protect (as the employer)
- Information related to the children
- Family routines and schedules
- Health issues
- Employment or business matters
- Security systems
- Any other sensitive household affairs learned in the course of employment.
XX. Dispute resolution
What happens when both parties find themselves at loggerheads? Lay out a complete roadmap for resolution in case of a dispute or misunderstanding.
- Step 1: Parties must resolve the matter through good-faith negotiations. Specify the number of days after written notice within which the issue must be resolved before it is referred to mediation. There is a blank space in the template where you can write down the number of days it will take to reach a solution.
- Step 2: Parties must submit the matter to non-binding mediation before a mutually agreed-upon neutral mediator. Parties must name the mediator and the city/state where it is located in the blank space provided in the template. This ensures clarity regarding the procedural rules that will apply to the mediation proceedings.
- Step 3: If mediation also fails, the dispute shall be resolved through the courts in the same city and state.
Boilerplate Clauses
Every contract includes several boilerplate clauses that are found in most commercial contracts. These standard legal protections do not deal with the specific nature of the working relationship but only exist to make the contract enforceable.
XXI. No waiver
Not enforcing a rule once doesn’t mean giving it up forever. The No Waiver clause prevents both sides from losing rights accidentally or creating a precedent for doing nothing.
XXII. Amendments
A nanny contract must have room for changing the terms of the contract, as long as these changes are in writing and mutually agreed on by both parties.
XXIII. Governing law
For legal clarity, both parties should decide beforehand which jurisdiction’s laws shall apply in case of a dispute (such as ‘New York’ or ‘Texas’).
This step is crucial because
- Parties might operate in multiple states or countries.
- Without this clause, a court could have discretion to apply its own local law, which may not be what you intended.
XXIV. Severability
A severability clause ensures that if one provision is ruled invalid, the rest of the agreement still stands. Most professional contracts include this clause to protect parties from losing their rights over a single unenforceable term.
XXV. Additional terms and conditions
This is your customization zone. If you want to add exceptions to our standard terms, or if you need to address the unique, this is where you write in those extra terms & conditions.
XXVI. Entire agreement
By including an Entire Agreement clause, both parties acknowledge that:
- The contract contains all agreed terms,
- No outside promises or side agreements are automatically enforceable unless added in writing.
- Future changes must usually be made through a written amendment signed by both parties.
In a nanny contract, this clause is especially useful because childcare arrangements often evolve informally over time. It creates a clear written record of the agreed expectations regarding duties, schedule, compensation, leave, and household rules.
Signatures
To make the document legally binding, both parties must sign and date the document by hand or a digital sign-off. Always sign before the job starts, so everyone is aligned and no time or resources are lost.
Make sure to carefully review each clause and any other relevant documents (including IDs, forms, etc.) to double-check for accuracy and legal compliance.
Who Should Use this Nanny Contract Template
- Parents or legal guardians hiring a nanny
- Professional nannies seeking formal agreements with families
- Household managers
- Family lawyers involved in setting up domestic employment terms
Making Changes to a Nanny Contract
A nanny contract is usually set up at the start, but in real life, things often shift a bit over time. Maybe the duties change, the working days need adjusting, or there are updates around transport or daily routines.
Instead of rewriting the whole contract every time something like this comes up, the easier way is to use an addendum. It’s basically a short update that gets attached to the original contract, so you can tweak specific parts without changing everything else.
For example, if the nanny was originally working three days a week and later the family needs an extra day, that change can simply be added through an addendum and linked back to the main contract.
And one important thing—once both sides agree on the update, it should always be signed by the nanny and the family. That way, everyone is clear, and the change becomes an official part of the agreement.
Related Templates
- Detailed Nanny Receipt Template
- Babysitter Contract
- Caregiver Agreement Template
- Daycare Contract Template
- Daycare Emergency Contact Form
Technical Note
This editable nanny contract template is available in multiple file formats, including
- Microsoft Word for easy offline editing
- Google Docs for cloud-based sharing, editing, and collaboration.
