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You can terminate her employment by writing a letter to her informing her that you are dismissing her by reason of redundancy. Specifically, it will be "employee redundancy" which means that the reason for her dismissal is that the requirement for her to do work of a particular type has ceased (state this in the letter).
You will not have to pay her a redundancy payment because, on the facts, it does not appear that you have employed her for the requisite period of time in order to be eligible for a payment (currently two years).
Note though that you will have to give her the notice period required under the employment contract she has with you.
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Thanks for your response Tom.
Would you be able to send me a template for this letter?
Also, would I have to state the reason for redundancy on this letter eg my daughter starting nursery so nanny position no longer required. When I took on the nanny, I was not going to send my duaghter to nursery but it is obvious that my daughter needs more 'learning' which she is not getting form home/nanny.Will this pose a possible problem eg can the nanny dispute the reason?
The letter can be be addressed to her and simply reading something like
" I hereby dismiss you from you employment as [insert job role] by reason of redundancy. Regrettably, the requirement for you to care full time for my child has now ceased as she is to start nursery to further her education and learning."
Also state the notice you are giving her (ie. in accordance with the contract) and thank her for her efforts.
The fact that your daughter's circumstances have changed after you employed the nanny is unlikely to prejudice you with respect to the dismissal, circumstances change in employment frequently.
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