Parents wanting deposit back HELP !

Okay so ...

I have this family enrolled to start in February I have 3 families for that spot I chose them. Turns out ... The daycare they originally want is now available so they are pulling back and want their deposit back. I told them no it's not refundable and they are telling me it's against the law and that they are giving sufficient time to replace the child spot.

The way I understand it, what's against the law is asking for service fees when the child is not yet attending daycare right ? Like if my spot is available in Sept. kid only start December charging full time rate for Sept. and Nov ?

Here is what my contract states about fees and deposits

A non-refundable security deposit for the total amount of 2 weeks of care per child is due at signing of contract in order to secure your child space. This NON-REFUNDABLE deposit will be deducted from the last month of daycare.

A 100$/month holding fee will be required if your child's space needs to be reserved for more than one month prior to start date. (I waived this for this family)

Can you please advise me on this so I can get back to these people
Thanks

Is the space open now? If you have the space free now, but they wanted it held till Feb, for them, then you are out money. But if the space is filled now, only to be available in Feb. and they want the deposit back, you do have time to fill the space and not lose any money. Am I right? Ultimately, you should consider what is fair for all. If they gave you the 2 weeks fee (security deposit) that would be applied to their last 2 weeks of care, but there won't be care, and you have 2+ months to fill the spot, I don't think it is unreasonable to refund the money.

However, it does suck that they had a spot reserved somewhere else and didn't tell you. To me, it is so incredibly disrespectful and insulting, so I get why you wouldn't want to give them a break, personally. But professionally, it's different.

I am not allowed to do any of these things, deposits, holding fees, etc., so if I have this wrong, please clarify.

Well, in my experience it can take up to 6 months to fill a spot in my area. This is why I advertised and interviewed in August for a spot in February. It's impossible to be sure here. It's very rural. Plus I did make purchase of a new playpen for the chills and new little Knick knack such as bibs and washcloths...Not putting me out by much but still. I made plans for this child to attends and made decisions based on our agreement.

Depending on the exact wording on your paper work it may very well be illegal.

I personally (while looking into if you worded it right so you know for next time) would tell them you will attempt to fill the space and if you fill it with a suitable family before their original start time you will refund the money. If you find you can't fill it and the other families that you turned away have moved on and found care then it will be fair to keep the money in lieu of lost funds.

As noted, professionally if you can fill the space you are likely best to return the money. IF your wording was done very carefully to cover you in this case (I can't remember what the wording required is but I do recall it had to be worded very carefully to be legal) and you are willing to risk the bad word of mouth that may follow then you are in the right to keep the deposit.

Technically you can't take paid vacation days as a self employed person and if Canada Revenue finds out you have you would have to refund all money made from paid vacations...this is another case of having things worded VERY carefully. You CAN have paid time off...just can't refer to it as vacation time. Again, I don't recall the exact do's and don'ts and it may vary on province but it is important to ensure you have your basis covered before refusing to refund the deposit because in some cases, depending on wording, it can in fact be illegal and certain types of parents will call you out on it.

The law states that a centre and licenced home daycare agencies can not charge a fee to put a client on a waiting list. That law does NOT apply to private home daycares. A waiting list is not a guarantee of a spot.

This client is not on a waiting list they where guarantee a spot. They have decided they no longer need that spot, therefore breaking the contract. You have with held you obligation by keeping the spot for them. The whole point of the deposit is to protect the provider when a client breaks the contract like this. So no you don't have to give them back their deposit.

I however, would inform them that you are not breaking the law. Explain the law and that it doesn't apply to you. I would then tell them that if you can sign on a new family (starting feb or sooner) by Jan 31, you will return their deposit (on Feb 1st via emt). But if you can't find a new client to sign on with care starting Feb or sooner then they forfeit the deposit.

It's exactly how I answered them as well. Blah ...really don't feel like advertising and interviewing again ... I hate that part.

Have you the names and contacts of the other people you interviewed back in Aug ?
If so just contact them and say the Feb spot has opened again , they may say YES to your spot
Good Luck