An employer of a nanny has a duty to check that they are entitled to work in the United Kingdom under The Immigration, Asylum and Nationality Act 2006. Fines will be implemented of up to £10,000 for each illegally employed worker and unlimited fines and imprisonment of up to 2 years can be imposed for knowingly employing illegal workers. You may remember the case involving Baroness Scotland in 2009, where she was fined £5,000 for failing to keeping copies of documents relating to her Tongan cleaner.

You need to obtain copies of certain documents from all potential employees (whether you believe them to be British or not). You also need to satisfy yourself that your potential employee is the rightful holder of any of the documents they present to you and to make a photocopy or a scan of the following:
a) The front cover and pages containing the employee's personal details, photograph and signature
b) Any page containing a UK stamp or endorsement
The documents that should be checked are:

EITHER - any one of the following:
1. A passport showing that the holder is a British citizen, or has a right of abode in the UK or
2. A passport or identity card showing that the holder is a national of an EEA or Switzerland or
3. A passport or travel document showing that the holder can stay indefinitely in the UK
4. Residence permit, registration certificate or omHHHHHome office or Border Agency document indicating rights of permanent residence to an EEA or Swiss national or family member
5. A passport or other travel documents indicating the holder is exempt from immigration control, is allowed to stay indefinitely in the country or has no time limit on their stay.

OR - two of the following:
1. An official document showing the employee's permanent national insurance number

AND
1. A full birth certificate issued in the UK or channel Islands, Isle of Man or Ireland which includes the names of the holder's parents or
2. A certificate of registration or naturalisation stating that the holder is a British citizen or
3. A letter or Immigration Status Document issued by the Home Office which indicates that the person can stay indefinitely in the UK or can do the type of work being offered or
4. Full UK, Channel Island, Isle of Man or Irish adoption certificate

OR
1. A passport or travel document or letter from the home Office endorsed to show that the holder is able to take the employment in question.
2. A work permit together with a passport or travel document or letter from the home Office endorsed to show that the holder is able to take the employment in question.

You need to satisfy yourself that your potential employee is the rightful holder of any of the documents they present to you and to make a photocopy or a scan of the following:
a) The front cover and pages containing the employee's personal details, photograph and signature
b) Any page containing a UK stamp or endorsement

EU EMPLOYEES
For most EU employees there is no restriction on working. If you employ a nanny from an EU country, you will need to view either a passport or national identity card.
However, it is very important to note that if your nanny is from Bulgaria or Romania they will need permission to work from the UK Border Agency before they can work as an employee.

The process for obtaining authorisation to work is in two stages:

1. The UK employer fist applies for approval of the employment under the work permit arrangements. (This does not apply to “domestic workers” but nannies are not included within this exemption).

2. The Bulgarian or Romanian national must then apply for an Accession worker card.

No Accession Worker Card is required if the person is self-employed.

For further information please visit www.ind.homeoffice.gov.uk or you can ring the employers’ helpline on 08457 143 143.

Taxing Nannies a link agency guides you through link and Nanny Payee Laws on what to take care on hiring a Nanny.