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In this video tutorial, Laura from Nanny Parent Connection discusses the importance of having a nanny contract in episode #9 of her series. She emphasizes that a nanny contract outlines the details of the working agreement, preventing misunderstandings between the nanny and the family. The contract offers protections for both parties: it ensures the family gets the care they desire and clarifies the expectations for the nanny's role. Additionally, it shapes the parameters of the position. Laura also notes that some families opt to pay nannies under the table, which can lead to forgoing a contract. Proper documentation is recommended for clarity and protection.