Retainer Fees

[twiggy]

I have so many children attending term time only that I am now having to charge half fee holiday retainers to still have an income during the holidays. Whilst I have always done this for teachers with children who attend during the day, I have now had to introduce this retainer for before and after school care. I have a child who attends my setting full time who has a parent at university, last year the parent advised that they could not claim funding during the school holidays so I agreed a slightly higher rate. I have since discovered this parent could claim for the university holidays and did! She was then found out when I had to declare the payments I received. I have calculated out of the 47 weeks I work the child attends my setting for less than 23 weeks and despite charging a slightly higher rate I lost nearly £3000 on the space last year as I could not fill it during the holidays. I have therefore decided to charge this parent a half retainer which works out to be just over £11 per week once she claims the 85% from student finance. The parent has got really funny with me and does not see why they should pay when their child is not attending. It turns out the parent owes thousands for over claiming last year. I am intending on changing my terms on 1st February but the parent will not sign a new contract. Am I being unreasonable and should I just give notice if they refuse to sign a new contract?

[bunyip]

Any time you offer a new contract or make significant changes to a contract you are essentially giving notice to terminate the current contract. You are therefore obliged to give a sufficient notice period, as if you were ending the whole arrangement, before introducing the new contract or terms.

Let's assume the current contract has the bog-standard 4 week notice period. I'd issue the client with a copy of the proposed new contract 6 weeks before I wanted it to start, thus giving them a reasonably generous 14 days to read it over, mull it over, make a decision.

I'd attach a letter, something like (but maybe a little less blunt):


Dear Ms Moderately Dishonest Student,

I hereby give notice of intention to terminate the current contract, effective [date 6 weeks' hence]. On that date, I shall be adopting new terms and conditions, as laid out in the enclosed new contract. Please read the new contract. If these terms are acceptable, you should sign the contract in my presence at my premises [and you don't even want to know how messy it gets if they sign at their home :p] within 14 days of the date on this letter. if the new contract is not acceptable, then you must take this letter as notification that the childcare service I provide to you will cease on [date 4 weeks' hence.]

I draw your attention to the following changes in which the new contract will differ from the current contract: [blah-di-blah = all the details]. You should, however, make sure you read and understand the contract in its entirety before making a decision to sign or accept notice of termination.

Should you have any comments or questions please let me know immediately and I shall be happy to arrange an opportunity to discuss them with you at our earliest mutual convenience.

Yours sincerely, your incredible, amazing, incomparable, and utterly gorgeous childminder,

twiggy

Stand well back and await the reaction. :thumbsup:

[chris goodyear]

Have you explained to the parent that she is paying for the place and not the actual looking after of her child? Maybe you can liken it to paying your rent or mortgage and say that when you go on holiday and are not 'using' your house so why should you pay for that week/fortnight? Perhaps she will understand. The other alternative you could suggest is that she goes on to an 'ad hoc' contract and that her place will not be guaranteed but if you really need to earn during the holidays than maybe not. If she refuses to sign then go ahead and give notice.