Giving your nanny proper notice for termination and calculating the final paycheque.

The termination of the employment contract for your nanny requires you to comply with formalities. First you must give her reasonable notice of termination.
Then you have to calculate all the money (salary, vacation pay owed, possible severance pay) that you have to pay to your nanny, and give her the required documents.

How much notice is required?

There is no one rule for all cases. The best thing you can do is to make an agreement regarding the length of notice required in the employment contract to avoid any possible dispute. Generally the minimum notice you can give is 2 weeks but it depends on other factors such as how long you have employed your nanny, etc.

You have several options when dismissing your nanny, the first is working notice. In this case you will give your nanny her notice, for example, one month and she will continue to work for this time while receiving her normal salary. This only works in cases where you still have an amicable relationship and can trust her to care for your child.

The next option is to pay out your nanny in one lump sum. Instead of asking her to continue working for you, you are essentially paying her to end the contract. She will stop working for you immediately. In this case you will give her final payment at the time of termination. 
Similarly, the third option is continued salary. Like the lump sum option, you will pay your nanny in lieu of notice. In the case, however, you will continue to pay your nanny's salary although she will not come in to work. The only difference between these two options is that you will not have to pay the total amount upfront thus it may be less of a financial burden.

 Marie-Helene at Her Magazine has written some informative articles about letting your nanny go, check them out here and here. And look over the employment standards for termination in your province to avoid a situation like this one.

Final paycheque
If you dismiss your nanny without working notice, you have 48 hrs to provide her final paycheque include any vacation pay owed. Make sure to include any special payments on this cheque such as gas or phone allowances. 

Any accrued vacation pay
If you do not pay out your nanny's vacation pay along with her regular salary and instead accrue it to be paid out annually, you will have to include the full amount owing with her final paycheque. 

 The documents for ending the employment

Don't forget to provide the following documents:
- The last paycheque
- Severance pay, if owed, in lieu of notice
- Record of Employment

Record of Employment

You must declare the total INSURABLE EARNINGS as well as the total INSURABLE HOURS. In addition you will be asked for the reason for which the employment has ended (dismissal, resignation, pregnancy, illness, etc).

This document is used by the Employment Insurance system to determine whether individuals have the right to EI benefits. This document is MANDATORY for all employers and can be done electronically or on paper (more info here). Both the employee and employer will need to keep original copies for their records.