Last Weeks Deposits

[Emma H]

Hi everyone

I hope you had an amazing weekend! I just had a quick question.....a friend of mine also runs a home daycare and something happened regarding a family leaving and I don't know what to tell her as I haven't experienced this.
In her contract it states that all clients must place a last weeks deposit and give a four weeks notice if they want their deposit applied to their child's last week of care .....Well this family told her today that they don't need care after this week and asked if they can have their deposit back....she told them in order to get the deposit you must give a four weeks notice....they told her they are okay with her keeping the deposit and that and that their last day will be on Friday.

Is this reasonable?? Would you let them stay the rest of this week? What would you do differently?

Very interested, I also had something similar also happen to me (the pregnant mom who wanted part time after her new baby arrived) so I would love to know what your thoughts are!

[Wonderwiper]

I take a two week deposit. It is clearly stated in my contract that this deposit in non-refundable. Clients are required to give two weeks notice. The deposit is then used to cover the last 2 weeks of care.

This covers me for the two weeks notice whether the client uses the care or not. If they don't give the two weeks notice then they forfeit the deposit so I am paid for those 2 weeks regardless.

[Emma H]

The only issue is she said on average it takes her about 4 weeks to find a new client so that's why she asks for 4weeks notice but only asks for 1week deposit as nobody would be willing to place down a months deposit (as far as I know)
The lady paid this week and is leaving this Friday without any kind of notice(gave her a 4day notice pretty much) and doesn't care about her 1 week deposit she had placed

Would you let her stay for the rest of the week, even though she paid this week but didn't give the proper notice?

[Lee-Bee]

I never understood having the contract say you needed more weeks notice than the deposit. It is so hard to enforce it. It sounds like this week was paid, and the deposit will be next week's pay (no child) so she is out 2 weeks pay. I think she just has to accept it.

Does her contract very clearly state that the family needs to pay for 4 weeks total once notice is given? or just say that she requires 4 weeks notice? If it is very clearly stated that they have to pay for 4 weeks of care from the date of notice of termination of care then there MIGHT be some hope of getting the pay...but not sure it's worth the effort as it would likely involve small claims court.

[Emma H]

Yes its very clear....there is a whole termination section I looked at her contract and another part she added was "payment is required for the 4week notice period if the child comes for care or not" and "provider may terminate the contract without giving any notice, if the parent fails to comply with the terms including but not limited to timely payment of fees"

[3rdtimesacharm]

How would that go over if the provider refused the child to come tomorrow morning? Is it really worth the argument and potential on-going dispute of upholding the contract? Why is she leaving? Is there potential of this person spreading bad word of mouth to others? Even if the provider is wanting to stand her ground...Is it worth it?
Going forward I'd recommend she change that in her contract. Make it two weeks as that is more feesable for someone to pay as a deposit.
I, personally don't require a deposit, but all of my parents pay 2 weeks in advance, on Fridays.

[Wonderwiper]

Personally....I think she is out of luck regarding the length of notice. I suspect it's not worth the hassle of taking them to court over the lack of proper notice.

I agree with Lee-bee...it makes no sense to require more notice than deposit. You have really have no recourse if people leave earlier, there is no incentive for them to give proper notice. Why would they pay three extra weeks when there is really nothing stopping them from just walking away from the 1 week deposit. Not saying it's right....just that it seems her contract sets her up for this.

As far as your friends problem, I don't see how she can deny care this week unless her contract states something like "you forfeit all pre paid fees if you terminate early".

She needs to redo her contract!!!

[torontokids]

I require 4 weeks notice and a 2 week deposit. If they don't provide one months notice they need to pay me for 4 weeks. I have never had an issue with it myself.

I think the options your friend has are to review the contract with the parent and let them know they are required to pay for 4 weeks of care (3 + deposit), if they are to return to care for the rest of the week then she requires payment tomorrow for the next 2 weeks (she already paid for this week, gave a 1 week deposit so owes for 2 weeks).

Putting someone in collections is cheaper/easier for you. They collect a percentage of the amount and do the work. Not sure if I would go that route or let it go though.

[playfelt]

Unless you plan to go to small claims court it becomes a case of finish out the week and take the hit - finishing the week is part of your reputation and not being seen/discussed by others as unprofessional - parent paid, parent stays. The fact she is done on Friday and not giving full notice is a separate issue. I ask for three week's notice but only take a two week deposit. I know there will be times I need to eat up that third week but mostly my parents let me know in plenty of time there will be a change or I get a feeling that things just aren't right and I can start putting feelers out. Absolutely do not give in and give the deposit back. Up to you if you accept the child any additional weeks but be sure the entire week is paid upfront at drop off in cash - ie no cheque the parent could put a stop payment on before you can cash it.

[Busy ECE mommy]

I would keep the deposit, and give them a personal letter stating that since they didn't give adequate notice, they owe for the rest of the weeks for the notice period. Also put in that all unpaid accounts will go to a collections agency.