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In this episode of her video series, Laura from Nanny Parent Connection discusses the significance of having a nanny contract. She emphasizes that a contract outlines the working agreement, preventing misunderstandings between the nanny and the family regarding day-to-day operations. The contract protects the family by ensuring care meets their preferences and provides the nanny with clear expectations for her role. Additionally, it establishes the parameters of the employment for both parties. Laura also notes that some families opt to pay nannies under the table and may forego a contract, but she recommends otherwise for clarity and protection.