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In this video tutorial, Laura from Nanny Parent Connection discusses the significance of having a nanny contract in episode #9 of her series on working with a nanny. She emphasizes that a nanny contract is essential for outlining the working agreement, ensuring clarity on day-to-day operations for both the family and the nanny. It provides protections for the family regarding care expectations and for the nanny regarding position details. Additionally, it helps define the job parameters for both parties. Laura notes that some families opt to pay their nannies under the table and consequently forgo a contract, but she encourages formal agreements for clarity and protection.