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In this tutorial, Michelle from Nannies on Call discusses the importance of having an employment contract for nannies. She emphasizes that a contract serves as a protection tool, clearly outlining the terms of employment to prevent misunderstandings or disputes later on. Contracts benefit both nannies and families by establishing clear expectations. Key elements to include in a contract are specific working hours, including days and times, any occasional time off, and any special requirements from the family, such as weekend availability for date nights. Overall, having a contract helps ensure clarity and agreement for all parties involved.