Really complicated retainer. Help!

[mmichellled]

Hello All

I have told a mum that I will charge a retainer from when she signs contracts to starts. We will do contracts next week and baby will start in August. It is 3 11 hour days a week.

I also have some temporary work (only ever half days) for two children that I can do until this point.

I want to charge a retainer as I may lose the temporary work once I inform them that it can't continue past August.

It works out that of the 27 days (11 hours days) that fall on the contracted days between now and then I have temporary work (half days) on 13 of them. I would be free though for the afternoons on these days.

Can I charge a retainer by the hour/ half day? Or do I only charge it on the days I am free completely?

Thank you!

[lisbet]

It does sound a bit complicated - almost like it's part retainer to keep vacancy and part deposit for space that will be available from August!

Personally I would think I would only charge it on the days I am completely free because:

a) the parent wants the full day not the half day so you're not technically free for her requested hours (this may be just my weird logic though )

b) August is not so far away and 33 hours in 3 days sounds like a good contract to me, so I would want to offer the best retainer deal possible

[mmichellled]

Just worked it out

Monthly fee would generally be about £570

If I just charge retainer for full days it would be £200

If I included half days it would be £300

I am going to do some settling in sessions. On these days I would only charge if they were more than the hours already paid for on that day (which they probably wouldn't be)
If they are on different days, or on afternoons where I hadn't charged because I wasn't free all day I would just charge the hourly rate.

I think that's right so complicated. I am with Morton Michel and think they offer advice so might be worth a call

[rickysmiths]

Unless the vacancy that is stated in the contract is free you shouldn't charge a retainer. The reason a retainer is charged is when there is a current vacancy but the parent doesn't want to use it yet but wants it kept free for them. If you are working those days then they are not free for the new parent to use.

I would not charge a retainer until the place comes available.

I would take a four weeks fees Deposit which would be non returnable if the parent doesn't start the Contract but is if you don't. I then keep the Deposit when the Contract Starts until the end of the Contract when it covers the four weeks notice period.

You also need to make sure you give the right notice to the temp family and allow for any holiday you or they have.

[mmichellled]

Thank you

Yes I think that's the way I assumed I should charge. I have said I will do a retainer so feel I need to go with that now.

I only need to give 28 days notice to the current parent (and will in fact give much more than this) as we are on a rolling 28 day contact where we agree hours each month if I am still available. She has known from the start this is temporary and that I am still looking for a more permanent contract. However, when I inform her I assume she will look for another childminder and therefore I may lose the work I currently have in the diary between now and August. I am then unsure whether I should charge the full retainer for those days as they are available again. I assume retainers are invoiced monthly.

Perhaps I should have gone for the deposit. I went for retainer as it sounded like she was going to sign about a month ago!

[Kiddleywinks]

I'm inclined to agree with Rickysmiths. You should only charge a retainer if the space is available.

I normally do a deposit and no retainer if starting within 28 days, a deposit and a retainer if start date is more than 28 days, with the deposit held until the end of the contract.

Can you not just ask for a deposit and tell her you won't charge a retainer?