Creating a Nanny Share Contract: A Comprehensive Guide

Setting up your nanny share was no easy task. First, you found another family you like who’s also interested in sharing a nanny. Then, you went through the process of interviewing potential nannies and not just any nanny. You were looking for one who met your family’s most important criteria, in addition to those of the other family. After hard work and a whole lot of patience, you found one! Better still, the nanny has accepted your offer. Now it’s time to draft a nanny share contract.

This contract will help you document everyone’s understanding and expectations surrounding this child care partnership and can act as a reference if any issues come up further down the road.

While the term “contract” sounds very official, just remember that this is, simply put, a mutual agreement between your family, the other family and the nanny that ensures you’re all on the same page. To help get you started on your nanny share contract, here are some suggestions.

Having a nanny contract is always crucial, regardless of the setup, but it’s especially important in nanny shares, as there’s more than one family’s needs and expectations to consider (in addition to the nanny’s).

“It is good to lay things out in advance in case anything goes wrong,” said Ilona Bray, a lawyer and author of “Nannies and Au Pairs: Hiring In-Home Child Care.”

Even small glitches, like an unexpected health emergency, can have serious repercussions if no one has thought about how to handle the situation, she says. “Just the act of talking it out, putting it in writing and going over it afterwards lets everyone know what to expect and know when expectations haven’t been met,” notes Bray.

A work arrangement that is too informal is more likely to confuse you both in the long term compared to one where everything is ironed out and made official from the get-go.

Because there are multiple parties involved in a nanny share, it’s generally recommended that each family draws up their own contract with the nanny — one of the reasons being, if one family drops out of the share, there’s still a contract; another being, different families may have different expectations.

Every contract has its nuances, but you can download a free sample nanny contract from Care.com HomePay.

Not totally clear on what to include in your nanny share contract? We asked parents, child care experts and Care.com legal and tax specialists to share suggestions on topics to cover in a nanny share contract. Here’s what they said:

Dates, times and locations

The heart of the nanny share contract will outline the when and where of your arrangement. In the simplest terms, state what days and hours the nanny will be watching the kids. It’s also ideal to determine the location(s) beforehand, too, so everyone is clear about where the children will be at all times.

Additional things to include in this section:

Do the locations have pets, security systems or additional technology the nanny will need to care for or access?
Transportation expectations. Will the nanny have their own car or drive one belonging to one of the families? Outline any and all policies on car seats, seatbelts, texting, etc.

Rules and preferred practices

The quality of care their child receives is the most important thing, according to several interviews with parents who have used a nanny share. So it makes sense to cover some or all of the expectations on care in the contract.

In this section of your nanny share contract, consider covering the following:

Day-to-day interactions. Is screen time allowed? Playdates? How often should the nanny “play” with the kids?
Discipline. Do both households utilize timeouts? Which behaviors require immediate attention?
Privacy expectations. Are the kids’ photos allowed to be on social media?
Food preferences. Will the host family be solely responsible for providing food for the children and nanny, or will the responsibility be shared between the families?
Special instructions/preferences of each child. Do either or both of the children take naps? If so, when do they typically go down?
Nanny updates. How will the nanny inform both sets of parents about their kids’ days?

Salary, benefits, vacation and sick time

Determine the average number of hours and pay structure that will work best for both families, but also consider deciding upon an hourly rate for the times when only one family needs a nanny.

“There’s going to be a time when the nanny’s only watching my child, or the nanny’s only watching the other family’s child,” said Ken, a dad in New York, who’s participated in a nanny share. “In that sense, you have to think of an hourly rate for that, and then you have to think of an hourly rate for when both children are together. We put it on an hourly rate, and then we guaranteed her a certain set number of hours. Then we said OK, this is how much you’re going to make if you’re watching one child as opposed to two children.”

According to the Care 2025 Cost of Care Report, the national average cost of a nanny averaged $827 a week or about $43,004 per year. The cost of a nanny share is about two-thirds of what you’d typically pay to have your own. Weekly, this would come out to $551 per family, and yearly, $28,652 per family.

Extracurriculars

While kids need and crave structure, there will be times your nanny wants or needs to get the kids out of the house or work on a special activity that requires extra funding. It’s best to discuss the possible extras ahead of time so everyone’s clear on how they will be handled. For instance, will the nanny pay for them upfront and be refunded, or is there a monthly budget?

Review process

Determining how and when your nanny will be reviewed is another section to consider ahead of time and include in your nanny share contract. Ideally, your nanny works out wonderfully, in which case their review and reports will highlight their service. But by determining how you’ll review your nanny before they start, you’re also outlining what will happen in case something goes wrong.

“I’m in a nanny share with another couple, and we’re a little unsure of how to deal with some issues we’ve been having with [the nanny],” says Rachel, a mom from Maryland. “She’s late at least twice a month and has been late twice already this week (today she was an hour late). She’s great with the kids, but her lateness is really frustrating.”

To avoid feeling helpless in these kinds of situations, the contract could outline the following things:

A trial period of 30, 60 or 90 days in which both families can evaluate the care provider.
A review date when the nanny will be given a report with feedback.
The process for when something goes wrong. Will a written or verbal notice be given? Who is in charge of communicating the notice to the nanny? What type of response is expected from the families? What is the time frame the nanny has to resolve the issue?
What kind of notice (written or verbal) and the time frame (two weeks or longer) your nanny should provide before quitting.
An annual date for when the nanny and the families can meet to review the contract and make any necessary changes including salary, benefits, hours, etc.

In addition, consider adding an at-will provision that states either family or the nanny can end the deal at any time if something goes wrong.

There are a lot of logistics when you’re part of a nanny share, so having a nanny share contract is extremely important. Each family should draft their own contract, and make sure the nanny is part of the process throughout.

Visit The Complete Guide to Nanny Shares to learn even more.