How To Start A Nanny Agency

Connecting parents with the right kind of help for their little ones can be a rewarding business, however, it’s also a serious matter. A nanny plays an important role in a child's care and development, so you want to make sure each nanny is the right fit for their respective client.

When you decide to start a nanny agency, you will be taking on a pretty big responsibility — no doubt you’re up to the task. However, it’s important that your nanny agency is properly set up to handle business matters.

That’s where good business legal expertise (and Sprintlaw) come in — keep reading to know more.

What Is A Nanny Agency?

When looking for extra help with their bundle of joy, parents often seek out professional services. To find the right candidate, many families turn to a nanny agency. Contacting a nanny agency is much safer than placing an ad on Trade Me, plus agencies are known for sending out well-trained, fully-qualified professionals.

Not all clients have the same expectations for their nanny, so nanny agencies will sometimes offer multiple different arrangements including:

• Live-in or live-out nannies
• Part-time or full-time placements
• Temporary, holiday, or emergency care
• Specialised care (e.g., for children with special needs)

To start a nanny agency, you will need to think about the different types of nanny services you will offer, the vetting process for potential nannies, on the job training, obtaining background checks, and much more — it’s a good idea to start making a detailed plan.

Are There Any Laws And Regulations For Starting A Nanny Agency?

A primary concern when starting a nanny agency is ensuring it operates as a legally compliant business. Since your agency will be providing care for one of the most vulnerable members of the community – children – it is especially important to adhere to all relevant legal standards and procedures.

As legal compliance is of crucial importance, it’s always a good idea to chat with a legal expert and get advice that’s specific to your nanny agency. For now, we’ve listed a few key legal considerations here.

Childcare Regulations

Childcare regulations are there to protect children under the care of an adult. In New Zealand, any individual working with a child needs to have passed a Children’s Worker Safety Check under the Vulnerable Children Act 2014. This includes identity verification, reference checking, and a police vet. These checks are required by law, so it’s important to ensure all your employees have completed them successfully.

Legal requirements for a nanny are straightforward; however, you may want to add additional requirements for your nannies prior to sending them to work with families. First aid training and qualifications in childcare are desirable. Often, parents looking to hire a nanny for their children want a candidate with some form of specialised training. The required safety checks set a bare minimum standard, so it’s a good idea to go beyond them.

Local Council Regulations

Local council rules are also likely to impact your nanny agency. Each council in New Zealand has its own regulations, so it’s important to research and understand the specific requirements for your locality. Zoning requirements, permits, signage, and certain safety regulations are typically determined by local councils. For example, if you plan to operate your agency from a residential area, you may need to check if any home business regulations apply.

Employment Law

As a nanny agency, you will naturally be hiring nannies to work in your agency – making you their employer. When you become someone’s employer, you have a legal duty towards them. The Employment Relations Act 2000 determines what legal obligations you owe your employees such as working conditions, minimum pay, entitlements, and breaks.

Even if you will be hiring nannies as independent contractors, it’s important to clarify their employment status in contracts and ensure your practices towards them are in compliance with New Zealand employment laws.

Privacy Laws

Running a nanny agency requires handling personal and sometimes, sensitive information. When doing so, compliance with the Privacy Act 2020 is crucial. The Privacy Act determines the measures your nanny agency will need to implement in order to protect the information of your clients and employees. It’s important to be aware of these obligations and navigate them carefully. Adhering to privacy laws not only keeps your nanny agency out of trouble, it also helps maintain trust with your clients and the community.

How Do I Start A Nanny Agency In New Zealand?

Once you’ve understood the laws that govern a nanny agency and are confident you can comply with them, it’s time to officially register your nanny agency. In New Zealand, every business needs to be registered with the correct government authority – you can’t legally run your business until it’s been registered.

Here’s what you need to know to get started.

Register Your Business

To register a business, you will need to choose a business structure. In New Zealand, the most common business structures are sole trader, partnership, and company.

• Sole Trader: To register as a sole trader, you simply need to attain a New Zealand Business Number (NZBN) and register a business name. A business name isn’t required if you plan on using your personal name for the business.

• Partnership: For partnerships, you’re required to get an NZBN for the partnership and register a business name unless the names of all the partners will be used.

• Company: Registering a company involves an application to form a company with the New Zealand Companies Office. Registering a company means following through on their rules and regulations, so it’s important to be well-prepared for matters such as determining company governance, knowing who directors and shareholders will be, as well as deciding the type of company your nanny agency will be.

Even though sole trader and partnership business structures have the simplest setup process, it’s important to be careful here — sole trader and partnership business structures have no legal separation from you. This means you will be personally liable if your nanny agency falls into debts or legal troubles.

If your nanny agency is a serious business endeavour, then we highly recommend registering it as a company. Setting up a company is a bit more complex, however, a company is a legal entity on its own. Therefore, you will have limited liability when it comes to your company, providing you with much more legal protection.

Create Legal Contracts

Once you’ve registered your nanny agency, it’s important to establish the legal contracts that will form the foundation of your business. Contracts such as Partnership Agreements, Shareholders Agreements, and Company Constitutions will outline key matters, including how your agency will be managed, the dispute resolution process, what happens when someone wants to exit the business, and other critical issues. Formalising these agreements ensures everyone is on the same page and provides a structured process for managing the agency, making operations run much more smoothly.

Have An Online Presence

A website for your nanny agency allows clients to find your business, learn about your services, and make bookings at their own convenience. An online presence can be a great advantage, however, it’s important to have the right legal agreements such as Website Terms and Conditions or a Privacy Policy ready to go. That way, your website can be legally compliant and protected while potential clients utilise it to engage your nanny agency’s services. 

What Legal Documents Do I Need For Starting A Nanny Agency?

We’ve mentioned some legal agreements above that are helpful when completing the setup of your nanny agency. There are a few more legal agreements you should consider – these contracts help protect your agency by limiting liabilities, safeguarding the rights of the respective parties, and outlining necessary processes.

Employment or Contractor Agreement: A contract between your agency and the nannies you hire, outlining the terms of employment, wages, hours, job responsibilities, and termination procedures.

Service Agreement: This is a contract between your agency and the family that outlines the services provided, including recruitment, placement, and any ongoing support or replacement guarantees.

Business Terms and Conditions: A clear set of terms and conditions for families using your services, outlining your responsibilities as an agency, your fee structure, cancellation policies, and limitations of liability.

Non-Disclosure Agreement (NDA): For privacy and confidentiality purposes, it's advisable to have an NDA in place to protect sensitive information shared between your agency, families, and nannies.

Key Takeaways

Starting a nanny agency requires some careful thought and consideration. However, with the right legal help, your agency can be ready for the business journey ahead. To summarise what we’ve discussed:

• Starting a nanny agency involves significant responsibility, as you are connecting families with professionals who play a critical role in children’s care and development
• Legal compliance is essential, including adhering to childcare regulations like Children’s Worker Safety Checks, police checks, and privacy laws
• Registering your business and selecting the right business structure (e.g., sole trader, partnership, company) is key, with company registration offering more legal protection through limited liability
• Formal legal agreements such as Partnership Agreements, Service Agreements, and Employment Contracts are crucial for managing the business and protecting your agency
• An online presence is important for client engagement, and ensuring your website is legally compliant with terms and conditions and a privacy policy is essential
• Additional legal documents like Business Terms and Conditions and Non-Disclosure Agreements help safeguard your agency and protect sensitive information
• With proper planning and legal support, your nanny agency can be successfully set up to handle business operations smoothly

If you would like a consultation on starting a nanny agency, you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.