First and Last month's fees

Hello everyone!

I would like your opinions on the following issue:

In my handbook/contract I require first and last month's fees upon starting, and I have a one month trial period, during which either party may terminate the contract.

I have had a potential client ask if the "last month's fee" is refunded if the contract is terminated during the trial. I have never had a parent ask this, and have never terminated or been terminated within the first month.

Does this make sense?? Should I eliminate the trial period?? I feel that if I were the one to terminate within the first month, I WOULD return the last month fee. But I'm not sure about what I would do should the family terminate. Again, I've never had to do this, so I don't know what my answer would be to this potential client.

Any advice is appreciated. Thanks!

What would the purpose be of the trial month if it didn't mean you could get the last months fees returned? If the last month's fees were not returned during that trial month then it would just be a matter of terminating care and using the final months payment as weeks of notice (which would not be a trial month).

I feel like legally you are not allowed to demand last months fees for home child care. I thought CRA was rather strict on how things are called and your deposit needed to be very carefully worded (same as holiday pay) otherwise you put yourself into a different form of employment (not self employed). Hopefully others can clarify this.

I've never heard of first and last months fees for child care - that's common for rental properties not child care.

I am trying to understand your intent in structuring your policies this way. Can you explain why you have opted to do this?


If I am understanding you correctly, a client who signs to begin care in Jan would have paid two months fees at contract. (first month and last month). They could tell you after a week that they have changed their mind. You could tell them after a week that it's not working for any reason too.

Does that child get to attend for the other 7 weeks you have been paid for if you tell them to go?
Do they get a refund of the 7 weeks fees they paid in good faith or are you expecting them to pay double day care (your fees and the new place they need to be able to go to work)?
Or are you just ending the care regardless of whose decision it was, and aiming to keep all the money?

My son is a contract lawyer. He has always said that contracts have cannot be biased to one party. If it's set up so one side has all the gain and the other side has all the loss, it will and often is over ruled in court. And I would imagine for two months fees, plenty of parents would take you to court if they weren't being refunded.

The last month's fees are covered so that the parents don't have to pay while looking for new care, or leaving for kindergarten.

I've worked it all out and have already changed that policy. I'm still new to this, so thank you for you input!

I can't imagine my parents paying 2 months up front. I had a hard time getting 2 weeks as a deposit.
I do 2 weeks(non refundable) up front to reserve the spot, and that is applied towards the last month of care(assuming adequate withdrawal notice is given.) I removed a trial period from my contract, as I found some people were using it as temporary care until they got into a centre, and then not wanting to pay, or wanting a refund. I increased my notice of withdrawal to one month for parents, and I found no one tried to run away on last payments. I take 6 months of postdated cheques at a time so I'm not hunting for payments(and payment is either due all on the 1st, or divided between the 1st and 15th) If they give inadequate withdrawal notice, then the last 2 weeks are forfeited to compensate me for lost wages.

I am similar to above.

I used to charge an enrolment fee equal to one week's fees. I've just changed that to two weeks. The enrolment fee is due at contract signing. A space is not considered taken until I have that contract and enrolment fee in my hand.

I then require fees to be paid bi-weekly, in advance. So on their first day of care, I have their enrolment fee in hand but also they have paid for their initial two weeks of child care.

If and only if someone has been in my care for 12 months or more, I give them a credit equal to their enrolment fee as a loyalty bonus for their final weeks of care when they depart the day care. If they have been here less than 12 months, then no loyalty fee is applied.

They are given a receipt for their enrolment fee as soon as it's paid when contracting for my care. This receipt is clearly marked as an enrolment fee not a deposit and it's clearly stated on the receipt that it is non-refundable. My contracts and handbook are all clear that it is an enrolment fee, that it's non-refundable and that any credit given at the end of their term, is subject to my discretion and based on the amount of time they have been in my care.

The reasons I do it this way are because I am a year round daycare. I don't close over summer. I was fed up of teachers who earn three times what I do, expecting to be able to pull their child over summer, not pay any fees, but have that space reserved for their return when September came. I have always been clear that is not something I can accommodate and that if they choose this day home, then fees are due year round regardless of attendance just like they are for every other profession. By having the clear policy that enrolment fees would not be credited if a child was here less than 12 months, it has eliminated the situation of teachers pretending they are a long term client but pulling their child at the end of the school year.

First and last month fee is for renters not for daycare.
The renters give it incase they damage the place before they leave and they get it back on the last month.
I never heard of it for daycare, just a refundable deposit of 2 weeks that goes towards the last 2 weeks when given the required notice.