Whether it’s a personal assistant, private chef, nanny, housekeeper, or a whole team of staff that you plan to hire to work in your home, each person needs a contract in place that outlines important details of their job.
A contract serves as documentation between you and your employees, ensuring that their job obligations and the rules of the home house are clear, wages and payment schedules are outlined, and other terms of employment are included.
Drafting Comprehensive Employment Contracts
A comprehensive employment contract that includes details of their role with you is an important part of being a household employer.
For a detailed sample contract, please see Chapter Thirteen: Resources & Tools.
A basic contract should include:
Work schedule details
- Employment start and end date
- Work schedule/hours
- Start and end times of each shift
- Total amount of weekly work hours
Pay and benefit information
- Hourly, weekly or monthly compensation rate
- Overtime pay rates
- Reimbursement details (mileage, cell phone, etc.)
- Benefit details (health care coverage etc.)
- Accommodation information (if any)
Holidays
- Paid and unpaid holidays
- Paid vacation days
- Sick leave policy
Job specific details or rules
- Job duties & explanation of job description
- Other details that are specific to your home or child (ie. nap schedule information, infant feeding schedule, etc.)
Once the contract is written, be sure you and your employee talk through any questions that need to be explained or clarified. Once it’s set, you should both sign it.
Clauses for Confidentiality and Privacy
A termination clause outlines the specific circumstances or instances when you can end your working relationship with your household employee. In other words, it should spell out any reason that the employee’s contract could be terminated.
Many clients also include a clause in their work agreement that indicates when the employees’ contract will end.
This doesn’t necessarily mean the employee is left unemployed. Instead, it may just mean you need to revisit the contract or make any new additions or other changes that accurately reflect the person’s job duties, salary, or benefits information.
When it comes to hiring people to work in your home, privacy is also of utmost importance.
Your household employee will be privy to many different things in your home – sometimes those things will include bank statements, prescriptions, passwords, conversations with your family and friends, and more.
These private things are meant to stay private; that’s why some clients choose to come up with a non-disclosure agreement (NDA).
This can be as easy as a clause written into your agreement that details information about confidentiality and what’s allowed or what’s not. Other clients have social media agreements or photography stipulations, stating what’s allowed to be posted online or not.
An NDA could go into greater details about what can or cannot be shared outside of the home – family names, job duties, or who they even work for. The NDA needs to include what will happen if the employee violates the agreement.
It’s a good idea to get legal advice if you have questions that relate specifically to your home and specific privacy matters.
Terms of Employment & Compensation
Attracting and retaining your household employee doesn’t just include offering a competitive wage. It also means offering an attractive benefits package. Wage and compensation information, benefits, and other terms of employment all need to be laid out in your work agreement.
Your employee is exactly that – an employee. This person is not an independent contractor.
You are required to withhold appropriate taxes with each paycheck. Independent contractors have no restrictions on their employment and set their own hours and job duties.
If you expect your employee to complete specific job duties and have expectations for your employee in how they complete their work, especially when it comes to working specific dates and times, they are an employee and need to be paid as one.
In your contract, you should outline the employee’s payment schedule (weekly, bi-weekly, monthly), as well as any overtime pay information.
Benefits
Healthcare
Providing a health care package is one of the most common benefits offered to household employees. Another alternative option is providing a stipend that goes toward health care benefits.
Retirement
Providing your household staff a 401K plan gives you a recruiting advantage over others that are hiring without that option. Not to mention, it’s a great way to retain your employees once they’re hired. It shows that you are willing to invest in their future.
If you plan to do this, it’s a good idea to contact a financial professional to learn more about what options you have – which might include more than you might think.
Student loan or education reimbursement
Many household employees complete degrees, obtain certifications, or attend training courses to continue their education and enhance their expertise in their field. This costs money and student loan debt can easily accrue.
Many household employers choose to provide student loan reimbursement, either in monthly amounts or in a lump sum. Before you do this, be sure to understand what the best way to do this is by talking to a financial professional, and also learn how this impacts your tax filing.
Bonuses
Providing bonuses throughout the year is one of the greatest ways to express your appreciation, encourage them, and let them know that they’re doing a good job.
Many employers provide a one-time payment, while others choose to provide a gift card to their favorite restaurant, or shopping destination, or a handwritten note with an airline gift card that encourages them to use their paid time off to take a vacation.
