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In this video, Michelle from Nannies on Call discusses the importance of having a contract for nannies. She emphasizes that contracts provide protection by clearly outlining the terms of employment, which helps prevent misunderstandings or disputes later on. The contract benefits both nannies and families by establishing clear expectations. Key elements to include in the contract are work hours, specific days, and any special arrangements, such as nights off or additional weekend duties. By detailing these aspects, both parties can refer back to the agreement if needed, ensuring clarity and accountability.