Your nanny insisted on her hiring: she does not want to be declared. Since she was highly recommended by her former employer, you give in and “hire her off the books.” But what are the risks?
What is undeclared work?
Not declaring childcare to Pajemploi, declaring only part of her working hours and paying her the rest in cash, or not declaring your nanny’s overtime and paying her “under the table”: this is what we call “undeclared work,” hidden work, or illegal work.
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It may seem trivial, yet you and your nanny are at great risk in doing so!
Risks for you, the employer
If your nanny goes to the labor court
Your home nurse has 3 years after the end of the contract to turn against you (even if she was not declared at her request) and ask to be reported (or to have ALL her working hours declared if you report partially). To do this, she only needs to provide proof of her work (testimony from people who saw her go to school for the children).
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However, she has every interest in doing so if she wants to benefit from social protection after her contract: unemployment, illness, maternity, etc.
The financial risk for you in this case is very high: in addition to the back payment of social security contributions since the beginning of the contract (an amount that can be added to penalties and a fine) that you will have to pay, you will also have to pay:
- the compensation elements to which your childcare provider would have been entitled and which would not have been paid (paid leave compensation, for example, undeclared salary)
- possible damages for your nanny depending on the damages suffered ( 6 months’ salary: MINIMUM flat-rate compensation )
- if she was not declared at all, the severance pay, notice, etc. that she should have normally received at the end of the contract (even if you paid them informally…!)
- fines (for example, for the benefit of Pole emploi, as this could have provided a job for an unemployed person)
This will inevitably cost more than a possible declaration, since you do not benefit from a tax credit or deduction on these salaries and charges, nor from an exemption from social security contributions.
If your nanny has an accident at work
In the event of a work accident, the health costs will not be covered by social security, and your childcare provider or her family may turn against you to pay these costs and any potential pension (which can be lifelong in case of disability) to compensate for the damages suffered.
If your nanny is incompetent
Without a contract, without PAJE declaration, you have no guarantee: if your home nanny injures her work, neglects your children, etc., you have no other leverage to resolve the issue than to fire her… With the risk that she will turn against you in the job market (see above). And if valuable items are broken, you will not have insurance to reimburse.
If your nanny resigns…
Your childcare provider may stop coming overnight, and you will not be able to do anything to force your child to give notice.
Labor Code
The Labor Code provides for undeclared work punishable by up to three years in prison and a fine of 45,000 euros (although the prison sentence is rarely applied).
You may even be deprived of your civil, civil, and family rights. For example, you may be prohibited from voting for a specified period (up to 10 years).
Risks for your childcare provider
No social protection
Since contributions are not paid to URSSAF via PAJE, your home nurse does not benefit from any social protection: she does not have the right to daily allowances in case of illness or maternity, she does not acquire any rights for her retirement, and will not be entitled to unemployment benefits at the end of the contract.
If you do not declare at all, not contributing to the IRCEM pension fund, your nanny will also not benefit from full salary maintenance beyond 8 days of illness.
Even if she is partially declared, all her rights will only apply to the declared part, which can cause her significant harm!
Financial risks
If your home nurse receives unemployment, maternity, illness, or FAC (parental allowance for studies) at the same time as the salary you pay her, she may be ordered to repay everything she has received and, in some cases, to pay a heavy fine.
A few reasons for non-declaration and how to circumvent them?
Does your home nanny want you to declare her for one of the following reasons? What to do?
She is on parental leave
In this case, highlight the risks to convince her to be declared: if she receives the “Free choice of activity” aid from FAC and works at the same time, she may be ordered to repay the FAC. If the work she does for you is part-time, she can receive the “Free choice of activity” aid at a partial rate.
She receives unemployment benefits
It is possible to accumulate for 18 months (and even 36 months for those aged 50 and over) the resumption of activity and unemployment benefits if the new salary paid does not exceed 70% of the old salary and if the number of hours worked does not exceed 110 hours per month. This helps maintain your employee’s income AND extends her unemployment rights by the same amount.
She does not want to lose her social assistance because her income will increase (RMI, housing allowance, CMU…)
It is true that with the threshold effects, her rights may disappear if her income increases (which it will since you will pay her). However, inquiries should be made with FAC as accumulation is possible for a few months.
She has no papers
If your nanny did not enter France illegally (if she has a visa), contact the Labor and Vocational Training Directorate, which can help her obtain a work permit. Of course, do not use her until she has this permit.
If she has no papers at all, DO NOT use her. You risk serious criminal problems (5 years in prison and/or €15,000 fine) and financial problems (minimum 6 months of damages). However, you can help her obtain papers so that you can hire her later.
See our page My nanny without papers
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