Is a nanny contract the same as an employment agreement?
Families often search for a “nanny contract,” but the legally important question is the worker’s status. If the nanny is an employee, the document is an employment agreement and New Zealand employment law sets minimum content and rights. Calling it a service contract does not change the real relationship.
Employment New Zealand states that every employee must have a written employment agreement. It must include required clauses, the employer must retain the current signed terms, and the employee must receive a copy on request. Minimum rights—such as lawful pay and holidays—apply even when the agreement forgets them or says something inconsistent.
This guide is a planning checklist, not a contract template
- 1
Confirm worker status
Apply the current New Zealand employee-or-contractor tests to the real relationship. Do this before choosing a document title or payroll method. - 2
Agree the job
Settle the children, location, duties, schedule, start date, reporting line, transport and any specialist requirements. Resolve assumptions before drafting clauses. - 3
Build lawful employment terms
Include every mandatory term and ensure minimum employment rights still apply. Add nanny-specific details that make the household arrangement workable. - 4
Review and sign before work
Give the nanny a reasonable opportunity to review the intended agreement and obtain advice. Both parties should keep the signed current version. - 5
Update changes in writing
If hours, duties, pay or the family’s needs change, discuss the effect in good faith and record any agreed variation instead of relying on informal messages.
Decide whether the nanny is an employee or contractor
Worker status affects the document, payroll, leave, minimum rights and how the arrangement can end. Decide it from the real facts—not which option appears simpler.
A regular nanny arrangement often includes employee indicators: the family sets the location and hours, defines the work, expects the named nanny to perform it personally, supervises key decisions and pays for time. A genuine independent contractor normally operates a business with meaningful control over how services are provided and exposure to business risk. There is no single fact that settles every case.
New Zealand’s statutory contractor gateway test came into force on 21 February 2026. If every gateway criterion is met, the worker is treated as a specified contractor. If any criterion is not met, the common-law tests still determine the true nature of the relationship. Review the current Employment New Zealand employee-or-contractor guidance for the full test.
Employee features
Contractor features
The special IR56 tax route for some part-time private domestic employees does not turn them into contractors. Worker status and who sends PAYE to Inland Revenue are related questions, but they are not the same question. The nanny payroll guide explains that distinction.
What a New Zealand employment agreement must cover
An individual employment agreement must contain legally required terms. Official tools should be used for the precise current wording; the checklist below helps families collect the facts needed for a nanny role.
- The full legal names of the household employer and the employee.
- A description of the work to be performed.
- The place or places of work, including regular travel if applicable.
- Agreed hours: guaranteed hours, days, start and finish times, and any real flexibility.
- The wage rate or salary, pay cycle and method of payment.
- Required public-holiday wording and other mandatory employment clauses.
- The employment relationship problem-resolution process and required explanation.
- A valid reason and end method for any fixed-term arrangement.
- Any trial or probationary term, only if lawful and correctly agreed.
- Any other terms the parties agree, provided they do not remove minimum rights.
Employment New Zealand’s creating an employment agreement page identifies mandatory, recommended and optional clauses and links to the official Employment Agreement Builder.
Nanny-specific clauses that prevent misunderstandings
The statutory minimum is not a complete operating guide for in-home childcare. Add clear, practical terms that reflect the children, household and level of trust involved.
Children and care scope
Child-related duties
Schedule changes
Expenses and property
Communication
Professional boundaries
Housework needs exact words
“Light housekeeping” means different things to different people. If the nanny is expected to clean adult spaces, prepare family meals, shop for the household or manage general laundry, list those duties and make sure there is paid time to perform them without reducing child supervision. Do not allow a role to expand informally after the start date.
Hours, pay, leave and cancellations
Write the normal week in a way that both parties can calculate. “Approximately 20 flexible hours” is rarely enough when one person needs dependable income and the other needs dependable care.
- Guaranteed weekly hours and the normal schedule.
- How additional hours are offered, accepted, recorded and paid.
- What happens when the family cancels hours that were guaranteed.
- How lateness, overnight time, travel time and sleepovers are treated.
- The gross rate, pay day, payroll deductions and payslip process.
- Mileage rate or direct reimbursement for approved work travel and expenses.
- Annual holidays, public holidays, sick leave and other statutory leave as applicable.
- Rest and meal breaks, including realistic cover during sole-charge care.
- Notice and process for requesting leave and reporting sickness.
Sole-charge breaks need a practical plan
Do not hard-code internet examples of current rates or add “8% holiday pay” by default. Minimum wage changes, and pay-as-you-go holiday pay is permitted only in defined circumstances. Confirm the current rules and feed the final terms into your nanny payroll setup.
Safety, privacy, transport and emergency authority
An employment agreement should set the durable expectations. A separate home handbook can hold changing operational details such as contacts, routines and care-plan instructions.
Health and emergencies
Transport
Confidentiality
Photos, devices and social media
Cameras and monitoring
Safeguarding concerns
The agreement and home guide should align with your nanny safety plan. Review plans after a move, new diagnosis, new child, changed school, vehicle change or material change in duties.
Trial periods, role changes and ending employment
These clauses are most valuable when they create a fair process. They should not promise that an employer can ignore statutory rights.
Trial and probationary periods
Employment New Zealand says a formal trial period must be agreed in an employment agreement signed before the employee starts, can last no more than 90 calendar days and cannot be used for someone who has worked for that employer before. Employees must still be paid and retain most employment rights. There are further restrictions, including for some migrant workers. Check the current trial-period guidance before including one.
Changes to the role
A new baby, changed work schedule or additional housekeeping can materially change the job. Discuss the proposal, provide relevant information, consider the nanny’s feedback and document any agreed change to duties, hours or pay. A broad “other duties as required” phrase is not a good substitute for good-faith discussion.
Ending the arrangement
Include notice obligations and what happens to final pay, expenses, property, access codes and confidential information. The reason for ending employment determines the lawful process. Performance concerns, misconduct and redundancy are not interchangeable, and a notice clause alone does not guarantee a fair dismissal. Get current advice before taking action.
Final checklist before the nanny starts
Use the contract as the bridge between a good hiring conversation and a reliable first month.
- The worker-status decision is documented and the agreement matches the real relationship.
- The role, place, guaranteed hours, duties and gross pay are specific and internally consistent.
- Mandatory clauses come from current New Zealand guidance, not an overseas template.
- The nanny had a genuine opportunity to ask questions and obtain independent advice.
- Any fixed-term or trial wording meets current legal requirements.
- Leave, public holidays, breaks, cancellations, mileage and expenses are workable in practice.
- Privacy, cameras, photos, transport, health information and emergency authority are clear.
- Both parties signed before work and received the current version.
- Your payroll and record-keeping process is ready for the first pay.
- A separate first-day handover covers routines, contacts, keys, alarms, allergies and immediate hazards.
