Is this a conflict of interest?

Hello all. First post here...

I'll try and make this as simple as possible.

I run a licensed, family childcare centre. In my care, I have a little one that sometimes has behavioural issues. I was able to qualify for a supported childcare worker. The worker I hired is beyond qualified. She has her ECE and has operated at least two childcare centres in the past as well as working as a support worker. I've learned a lot with her and tried to offer my friendship since she is new to town.

I knew there was a possibility that she would open a daycare again when she got settled and wasn't too worried about it because there is such a demand in our area. I knew it was likely that some of the children would get juggled around and even told her she should approach one of my mothers' because I thought it would be better for the child (and family) if they were able to put her full-time in one daycare then juggling her around three.

However, yesterday my "best" family (as in: two siblings in full-time, relaxed parents and they pay up front for spots booked) gave notice because they will start at my worker's place in September.

I believe the main reason is because she is charging $5 less a day -- because she can -- I can't. For two kids that makes a difference, but I never thought that I was at risk to lose them because they all seemed so happy and one of the children does not accept change well. This family went months without childcare for two children with both parents working full time because it just wasn't available. I figured when they were settled that would be it.

Regardless, they have the right to choose what works for them. My concern is with my supported childcare worker. My employee. As lovely and helpful as she's been, I don't know how to approach her with this. Or when. Or if I should. She worked today but we had a full house and it didn't seem appropriate.

Do I ask her if she knew this family had given notice? If they were signed up for her program?

I can't imagine just letting it go because I'm trying to fill those two spots and I was worried about a potential family stopping by on a day that she's working. That's not acceptable. I shouldn't have to worry about my employee poaching my families.

She's working again on Thursday and I have a family stopping in that day to talk to me about child care and I'm not sure what action to take.

I live in a very small town so don't want to burn bridges and want to handle it as professionally as possible.

Thanks for any insight.

ETA: I should be clear it's quite possible that the family approached my childcare worker (I should have given her a pseudonym for simplicity's sake). They have met outside my centre before and seem to have gotten along nicely. I don't really believe that she was soliciting my families.

This is what I always include on the contracts I make with my employees:

- You agree not to supply private Services to Parents using the Provider Services
- Upon termination of this agreement you shall not, for a period of seven (7) months after termination, provide or offer to provide Services for any Parent who previously used the Provider Services or who was introduced or made known to you while you were associated with the Provider.

Honest opinion - Be happy for her.

It rather bitter sounding that you okay with her taking a particular client but not this sibling group. She came and did the job she employed to do. She now moving on. Fact some client going with her, is just way it is. You learned from her and it good to have friend's in this business. Don't be sour grapes and make it awkward.

She not obligated to share her business information with you. Don't put in that position where she have to say she not willing to breach client confidences. That horrible position to put someone in and it never going end well. It not matter who approached who. The situation is they are going. Take higher road and be professional and let it go.

I think what she is doing is wrong, but she is not breaking any law or contract. I would schedule meetings with potential clients when she is not there and limit her contact with clients or make her sign a contract and/or daycare rules/policies asap so you are protected and she is liable in case she snatch your clients

The time has long passed for this to have been discussed (it should have been agreed upon before hiring her). They have formed an agreement and you can't do anything to change that.

Discussing it with her won't change the fact they have created a plan/contract together for future care. Would you really want to force the family to stay with you? I would expect that would cause great tension and resentment.

All you can do is move on. When you hire a new staff member ensure you have something in writing to prevent this from happening again...but the reality is even with a contract saying they won't take your current families with you there likely isn't much you can do. Would you really take them to court? What financial and reputable costs would that entail?

The best you can do is keep things smooth and civil with both those parties...who knows what the future will hold, they may come back to you in short time realizing they left something good behind. Don't burn those bridges now!

Wowsa! I think we've made a mountain out of a molehill. I'm sorry, obviously I wasn't clear or specific enough about my concerns.

First of all, it's important to realize that she is scheduled to work with me until the end of August. That matters.

Second, I'm not bitter about this particular family moving. Sad? Yes. Surprised? Yes. Bitter? No. You are reading too much into my comments. Sour grapes? Insulting. Court? Yikes, you guys are way past anywhere I ever intended on going.

I'm just trying to figure out the best way to handle it -- because it does need to be handled -- so that no feelings are hurt and we are on the same page for the remainder of our time together.

The way I see it, my choices are:
1. Gently let her go, stating that I feel we are in a conflict and I want to give her space to build her business without either of us feeling like we are stepping on the other's toes.

2. Or I could talk to her and see if it developed organically and she wasn't actively trying to take my clients. That does matter to me. These women know each other outside of my centre and it's possible, if not likely, that they just struck up a conversation and the mom felt this would work out best for her. That's cool and, of course, her right. Family first. But if she was pursuing them, that's less cool and I don't want to have her in my centre for the rest of the summer while I fill my empty spots and she fills hers. Awkward.

Right now, I'm uncomfortable trying to fill those spots when she is working and that's not acceptable. So, I either need to address it directly so we are on the same page or let her go.

This is not going to end badly. Her and I are both better than that. I can see into her backyard from my deck. We are always going to work together in some way and plan on having scheduled play dates at the playground near us to let the children interact. She plans on transitioning to a preschool in a year and I'll likely walk some of my kids over to her centre for their preschool time.

Also, don't forget that there is a child here that trusts her and she's made excellent progress with him. I'd like to see him get another month with her so he can continue to grow. He really responds to consistency. It's not all about the backend of the business.

A non-compete clause is impossible in a town this size and would actually not be fair to our community that desperately needs childcare providers. The clause and contract are irrelevant. Even if I could go back in time, I wouldn't use one. It's great she's opening up here and I look forward to working with her more. I've encouraged her to open a daycare since I met her and did not mind her buying a home so close to me. Even more so, I'm excited about having someone I like as a neighbour. I just don't know how to proceed with the remainder of the summer.

Honestly, she broke your trust. Once trust is gone it is impossible to work with them

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Originally Posted by Artsand crafts

I think what she is doing is wrong, but she is not breaking any law or contract. I would schedule meetings with potential clients when she is not there and limit her contact with clients or make her sign a contract and/or daycare rules/policies asap so you are protected and she is liable in case she snatch your clients

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I don't because she given permission to approach client. She said

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I knew there was a possibility that she would open a daycare again when she got settled and wasn't too worried about it because there is such a demand in our area. I knew it was likely that some of the children would get juggled around and even told her she should approach one of my mothers' because I thought it would be better for the child (and family) if they were able to put her full-time in one daycare then juggling her around three.

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She have no loyalty clause in contract. It common service people take client's with them if move or set up on own. But she given permission to approach clients not able complain now some surprises in how going.

You cannot make her sign contract in retrospect. That viewed as employer abuse. There labour standard laws to protect employees from these sort actions.

Personally I would be ticked!! She is stealing your clients no matter how you look at it. I think it's great you want to be the better person here but it would definitely be awkward.

I say interview all new families when she is not around. It's up to you if you can work with her for the next month.

I was by no means suggesting you were going to sue...I was just noting that there really isn't anything we can do to prepare for this situation. It comes up with all fields of work, people branch off, start their own companies and often bring clients with them. If you plan to do outings and park playdates with this person then I do not think laying her off is going to go over well. Even with the best intentions, laying her off will create tension. Obviously you need to decide if you can continue to work with her. But if you plan to stay on good terms and hang out in the future then I don't see much to do other than continue on. You can bring the topic up to clear the air a but be prepared to handle that conversation if you don't like her answer (she approached the family etc).

if you are happy with her as a neighbour and as person running a daycare close by then just talk to her as a friend and be honest and just say you did not expect the 2 children to give their notice and you are worried about finding 2 or 3 new kids for Sept and see what she says.......you never know she may help you fill your spots as I have a few friends near by and we help each other out when spots are available :)

if the Mom of the 2 kids and your helper are friends outside of your daycare then it is sort of normal that they would move the kids to the new daycare

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Originally Posted by Saje

I'm just trying to figure out the best way to handle it -- because it does need to be handled -- so that no feelings are hurt and we are on the same page for the remainder of our time together.

The way I see it, my choices are:
1. Gently let her go, stating that I feel we are in a conflict and I want to give her space to build her business without either of us feeling like we are stepping on the other's toes.

2. Or I could talk to her and see if it developed organically and she wasn't actively trying to take my clients. That does matter to me. These women know each other outside of my centre and it's possible, if not likely, that they just struck up a conversation and the mom felt this would work out best for her. That's cool and, of course, her right. Family first. But if she was pursuing them, that's less cool and I don't want to have her in my centre for the rest of the summer while I fill my empty spots and she fills hers. Awkward.

Right now, I'm uncomfortable trying to fill those spots when she is working and that's not acceptable. So, I either need to address it directly so we are on the same page or let her go.

This is not going to end badly. Her and I are both better than that. I can see into her backyard from my deck. We are always going to work together in some way and plan on having scheduled play dates at the playground near us to let the children interact. She plans on transitioning to a preschool in a year and I'll likely walk some of my kids over to her centre for their preschool time.

Also, don't forget that there is a child here that trusts her and she's made excellent progress with him. I'd like to see him get another month with her so he can continue to grow. He really responds to consistency. It's not all about the backend of the business.

A non-compete clause is impossible in a town this size and would actually not be fair to our community that desperately needs childcare providers. The clause and contract are irrelevant. Even if I could go back in time, I wouldn't use one. It's great she's opening up here and I look forward to working with her more. I've encouraged her to open a daycare since I met her and did not mind her buying a home so close to me. Even more so, I'm excited about having someone I like as a neighbour. I just don't know how to proceed with the remainder of the summer.

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I still think you let it go.

Why would dismiss her? She do no wrong. You encourage her approach one family. You not tell her that the only one. It seem like you gave green light and now regret. That not on her. That on you to learn from. I would be careful about dismissal, you might leave self in situation of accountability with Labour Standard.

Yes, might have developed organically - but honestly, none of your business how it not really matter. It not going change outcome.