Contract Questions: Deposits and Payment Failure

[NillaWafers]

I posted a bit back about the mom who bounced her check. I gave her a week off the contract to keep her child home and decide what they're going to do. I texted her today and she said they won't be continuing care. However, since I have a two week deposit - she wanted to know if this next week would be her last week.

My contract says nothing about that. What happens to your deposit if the parent doesn't pay? Would you expect the child to attend care since those two weeks have been paid? I haven't replied to her yet, obviously I need to change my contract to mention what happens during non-payment situations (right now it just covers bounced checks).

[spedmommy4]

In any contract I have signed, I assume the contract is refundable, unless a contract states that it is not. And in this situation, since it sounds like it was designated to cover the two week notice period, I would assume you have to either provide the care or refund the deposit.

[finsup]

Hmm...I think I'd say I'd provide care for next week but would be considering the week she didn't pay the first week of her notice. As a parent I would be OK with that, and very thankful to have had a week off of payment to figure things out.

[NillaWafers]

Hmm...I think I'd say I'd provide care for next week but would be considering the week she didn't pay the first week of her notice. As a parent I would be OK with that, and very thankful to have had a week off of payment to figure things out.

That's what I ended up doing. I think when it comes to the deposit I get confused easily haha. Like when does the deposit get applied. What if I had a kid who I just didn't want to come back due to behavior or misconduct on the parents part? Am I obligated to care for that child despite the issues? Or would I have to refund?

[childcaremom]

Hmm...I think I'd say I'd provide care for next week but would be considering the week she didn't pay the first week of her notice. As a parent I would be OK with that, and very thankful to have had a week off of payment to figure things out.

This is how I would have handled it, as well.

If I remember, did you email her telling her the same? That she could take a week off, figure out what they were going to do, and if they decided to pull that the deposit would be applied to that week and the next?

If so, exactly as above.

[NillaWafers]

Yeah I guess to be honest I didn't see her putting her back in for a week to use the deposit since she is off school. But I guess she has been asking for the other kids.

I wanted to make sure my contract was iron clad for the deposit, I was thinking about putting something in about gross misconduct forfeiting the deposit making it non-refundable/may not attend final two weeks. I'm not talking non-payment. I mean like if there was a violent kid or a really disrespectful parent that I wouldn't want to see after termination.

[Preschool/daycare teacher]

Yeah I guess to be honest I didn't see her putting her back in for a week to use the deposit since she is off school. But I guess she has been asking for the other kids.

I wanted to make sure my contract was iron clad for the deposit, I was thinking about putting something in about gross misconduct forfeiting the deposit making it non-refundable/may not attend final two weeks. I'm not talking non-payment. I mean like if there was a violent kid or a really disrespectful parent that I wouldn't want to see after termination.

I put it in my policies and contract that a two week notice is required by parent and provider to terminate services. But I also included the exceptions to that (disrespect, behavior that is harmful to the other children or myself, etc) so I could terminate immediately if needed. However, I do not require payment for the two weeks if I terminate immediately. I figure if the situation is bad enough to term immediately, I wouldn't care about not getting payment for their last two weeks.

[daycare]

I have in my contract that if they fail to give 30day notice of intent to term, then their deposit it lost.

BUT you have to do what works best for you.

If you want to let her use the last week, then I would allow her to do that.

I also have in my policies that if you term before 90days, then i also keep 100% of your deposit.

I don't have time to keep advertising and looking to replace people.

[Ariana]

My deposit covers any non payment and/or the final two weeks of care. So if a parent owed me $$ for a week, the deposit would be applied to that week and one more week of care. I wouldn't give two weeks of care if they still owed me money. I have never encountered this problem however because if a parent failed to pay me they would lose their deposit and be terminated immediately.

I also have a 6 week trial period where if the parent terminates they forfeit their deposit.

Hopefully that makes sense!

[NillaWafers]

My deposit covers any non payment and/or the final two weeks of care. So if a parent owed me $$ for a week, the deposit would be applied to that week and one more week of care. I wouldn't give two weeks of care if they still owed me money. I have never encountered this problem however because if a parent failed to pay me they would lose their deposit and be terminated immediately.

I also have a 6 week trial period where if the parent terminates they forfeit their deposit.

Hopefully that makes sense!

Ok that makes a lot of sense. Since she wasn't able to pay last week, and decided to terminate the deposit would only cover this week, so she was right in wanting to bring her daughter - who by the way - puked after 4 hours of being here and now can't come back until Weds. I suppose if I really didn't want a parent back I can just refund the deposit so, no contract changes in the works.

[Ariana]

Ok that makes a lot of sense. Since she wasn't able to pay last week, and decided to terminate the deposit would only cover this week, so she was right in wanting to bring her daughter - who by the way - puked after 4 hours of being here and now can't come back until Weds. I suppose if I really didn't want a parent back I can just refund the deposit so, no contract changes in the works.

What's in your contract regarding non payment? In my opinion you should be able to terminate and keep the deposit for failure to provide payment. Do you get paid before services or after?

[NillaWafers]

What's in your contract regarding non payment? In my opinion you should be able to terminate and keep the deposit for failure to provide payment. Do you get paid before services or after?

Well, nothing really haha. But I get paid before services, so if a payment bounces or they don't pay they have fees upon fees (40 dollars to bounce, 20/day late fee). After a day I won't accept the kid into care. My deposit is equal to two weeks care.

It almost feels counter-productive though because it's like oh you can't pay, now have two weeks paid from your deposit (which of course I have to provide care for), then see ya.

[Ariana]

Well, nothing really haha. But I get paid before services, so if a payment bounces or they don't pay they have fees upon fees (40 dollars to bounce, 20/day late fee). After a day I won't accept the kid into care. My deposit is equal to two weeks care.

It almost feels counter-productive though because it's like oh you can't pay, now have two weeks paid from your deposit (which of course I have to provide care for), then see ya.

I think you should have a clause in your contract that states that late payment could result in immediate termination and a forfeit of deposit. This is what I have in my contract because otherwise you are going to be providing them with 2 weeks of care which, like you said, is kinda counterproductive!