difficult situation

[mumx3]

A childminder friend of mine that I know from the Sure Start centre toddler group is struggling with what to do, so I said I would ask on here. Perhaps you guys can help?


She took on a child 3 weeks ago and has a one month "settling in" period which means either she or the family can change their minds and there would be no notice period. The child is a nightmare, (long story) and she has decided she cannot care for the child as it has such a negative impact on the other children she already has. So she wants to tell them this week that the trial period has not worked and she is unable to care for the child. She will refund the rest of the months money and leave it at that.

Here is the complication.....

She signed contracts 3 months before the child started and charged a 50% retainer to hold the place until they needed it. Standard practice I am guessing and the parents were perfactly happy with this.

Trouble is now she wants to end contract during the trial period and doesnt know what to do about the retainer fee they paid. She doesnt have the money she earned from the retainer to hand back to them; apparently things were tight and it was used.

What should she do? Does she have to payback the money she charged as a retainer?

I really feel for her as she is so stressed about it. Any ideas would be great. I will see her later on the school run so it would be good to give her some idea of where she stands.

Thanks guys

[The Juggler]

I would think that the retainer was payment to hold the place during the period the place was free and child was not coming. However, I can see your friends dilemma given she charged it to hold place and now she is ending the contract. However, if this was 2 years down the line would she worry about refunding the retainer?

I would check with NCMA. If she is not legally bound to pay it back then what I would do is offer to work a notice period for the parents so they can have time to find someone they are happy with and perhaps do it at a reduced fee to offset retainer?

Not sure it's a difficult one.

[green puppy]

I don't think she will have to pay back any retainer money, by holding the place for that long she may have turned away other work. It is unfortunate that things are not working out but that is why we have a settling in period. If your friend uses the ncma contracts the retainer charges should be explained on the back of the last page.

[FussyElmo]

Agree with the above it is a very difficult situation.

if she has used the NCMA contracts mine states

"if the registered childminder is not able to offer the place as agreed under the terns of the contract or varies the term and conditions of the placement with out the parents/guardians agreement, then the retainer fee should be returned to the parent/guardian in full. If the parent/guardian decides not to take up the retained place , then the fee may be retained by the childminder!"

Now as she is in the settling in period does this apply?

[LittleMissSparkles]

having dealt with something similar NCMA told me that a retainer fee is none refundable and as long as the contract was started on the date specified and agreed in the contract regardless of settling in period built in then legally you can give notice within one day of the contract actually commencing iyswim HTH x

[mumx3]

I suppose the other thing she could do is wait until she is into the actual contracted period and then work 4 weeks notice for the parent.

I think she just feels bad because the parents paid the retainer for a place and now they dont have a childcare place long term with her due to the difficulties she is having with the child. etc etc.