The only additional complication is agreeing holidays, which can be tricky - but as with anything good communication of your expectations and the expectations of your nanny is the key. Might be the same with childminders for all I know, but I think you don't pay your childminder for their holidays?? I think Steve is talking about au pairs - a qualified nanny is a very different quality of childcare. It's worth putting together an employment contract which can be in plain English and not legalese, but clearly lays out what you expect and what your nanny should expect. If you use a payroll agency, they will be able to help you with a pro-forma. Should cover hours of work, what they should and shouldn't do, annual holidays paid and the system for arranging, whether holidays can be carried over from one year to the next, salary and date of salary review, etc.