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  1. #1

    Question regarding termination of daycare contract

    I have a question regarding termination of contract - we are terminating our contract with our daycare provider, and she mentioned that since she has not taken her vacation yet so we owe her a weeks worth of vacation pay. However this has not been stated in the contract. Am I obliged to pay her for that week?

  2. #2
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    Not unless it is in the contract. You probably have to give her a certain notice period, and if you leave during that notice period, you would still have to pay. For example, I have a two-week notice period, and the deposit my clients pay at the contract signing will go towards that time. If you decide to give a shorter notice period, you still pay for the full two weeks because I would need time to find a new family. I don't take paid vacation, so that part wouldn't apply to me.

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  4. #3
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    I agree with Treeholm. I also have a deposit given on contract signing for my two week notice.

    Depends on what your contract says, and the timing of your notice period as per your contract. If your notice period falls during her vacation that you were notified of, and she takes paid vacation and/or requires paid notice stated in your contract, then yes, you should pay for that week. If she is asking for vacation that hasn't been scheduled yet in the future and probably occurring after your departure, then if it isn't mentioned in the contract, I would not pay.

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  6. #4
    Euphoric !
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    I would also say that you do not have to pay unless your contract states that you will have to pay vacation pay if you terminate before the provider takes her vacation. As long as you have given the proper notice or paid for the period of notice instead, then I believe you should not have to pay anything more.

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  8. #5
    Thank you all. This is what I thought as well. The notice period was 4 weeks, and I put in my notice 6 weeks before the end, as a courtesy. The vacation does not fall in this time period. She mentioned that like most other places, vacation is accrued per month worked. However, I think this would need to be stated explicitly in the contract.
    Last edited by totomama; 06-10-2013 at 01:02 PM.

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    She is a self-employed person, and not entitled to accrued vacation benefits. If she wishes to be treated as an employee, that is different but the CRA has some pretty strict guidelines on how to tell if you are an employee or a self-employed person. You can't just pick and choose which qualities you like on each list LOL

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  11. #7
    Euphoric !
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    I do know providers who do it this way, with vacation days being accrued monthly, but they have that in their contracts so that there are no surprises.

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  13. #8
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    Yes, sunnydays, I agree that you can put whatever you want into your contract. In this case, however, it sounds like the provider was going on the assumption that the client would understand that vacation pay is accrued just like anywhere else. That sounds like the provider is trying to use the employment standards, and as a self-employed person, she is not entitled to use those standards. Can you imagine hiring a contractor to do some work for you, and getting the bill with HST and vacation pay added? As long as the contract is set up that way, it would be fine, but it doesn't sound like that was the case.

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  15. #9
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    I think it's ridiculous that a provider would ask for a weeks vacay when it's not in the contract as accrued vacation.

    She has 6 weeks notice, if she replaces the client before she takes vacay in august then that client will be responsible to pay for her week off. Wouldn't she be paid double if she got it from this client as well?

    Seems sneaky to me. But I understand we don't have the providers side of the story.

    If I were you (the client) I would just lay low until the last payment. Pay for your time until the end and thank her for her service. You don't want to run into trouble in the last few weeks of care.

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  17. #10
    Even I have teh same opinion, you do not have to abide by anything that is not mentioned in the contract. If it is not mentioned then the provider is not entitled to any vacation pay.

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