Refund Policy

[EAP]

I only require two weeks notice for termination - but most of my families pay a month in advance - I don't want to end up having to give a refund - does anyone have a policy in their handbook that addresses this or should I eliminate monthly payments and only accept up to two weeks of payments?

[EntropyControlSpecialist]

I accept bi-weekly and monthly (4 weeks) and have it in many places (the contract once, the parent handbook in multiple places, the agreement that states they read the parent handbook) that a refund will not be issued in any event including termination.

I had to do this after getting burned.

[MarinaVanessa]

Originally Posted by EAP

I only require two weeks notice for termination - but most of my families pay a month in advance - I don't want to end up having to give a refund - does anyone have a policy in their handbook that addresses this or should I eliminate monthly payments and only accept up to two weeks of payments?

If your termination policy 2 weeks and a client pays a month in advance then gives you a 2 week term notice, then you are obligated to pay the remainder back.

Either change your policy to include a NO REFUND policy or stop accepting a month of payment in advance ... whichever you want to do.

I personally would not feel right keeping any money that I had not earned other than my 2 week term notice period. Even if the client did not bring their child the 2 week term period allows me to not lose income during those 2 weeks while I look for a replacement client so that I feel is fair ... keeping an additional week or 2 of child care fees past the 2 week term period doesn't feel right to me especially if I won't be taking care of the child during that time.

[EAP]

Originally Posted by MarinaVanessa

If your termination policy 2 weeks and a client pays a month in advance then gives you a 2 week term notice, then you are obligated to pay the remainder back.

Either change your policy to include a NO REFUND policy or stop accepting a month of payment in advance ... whichever you want to do.

I personally would not feel right keeping any money that I had not earned other than my 2 week term notice period. Even if the client did not bring their child the 2 week term period allows me to not lose income during those 2 weeks while I look for a replacement client so that I feel is fair ... keeping an additional week or 2 of child care fees passed the 2 week term period doesn't feel right to me especially if I won't be taking care of the child during that time.

I agree about feeling wrong - but I also don't want to do refunds if I can avoid it.

[EntropyControlSpecialist]

Originally Posted by MarinaVanessa

If your termination policy 2 weeks and a client pays a month in advance then gives you a 2 week term notice, then you are obligated to pay the remainder back.

Either change your policy to include a NO REFUND policy or stop accepting a month of payment in advance ... whichever you want to do.

I personally would not feel right keeping any money that I had not earned other than my 2 week term notice period. Even if the client did not bring their child the 2 week term period allows me to not lose income during those 2 weeks while I look for a replacement client so that I feel is fair ... keeping an additional week or 2 of child care fees passed the 2 week term period doesn't feel right to me especially if I won't be taking care of the child during that time.

In that case, I would give back the 2 weeks beyond their final 2 weeks notice. It doesn't state that I will nor would I ever include that in my contract/parent handbook/etc. but I would. I've done similar things in the past.

[AmyKidsCo]

I also have in my policies that tuition fees are not refundable. Period. My thought is that if they're really concerned about it they should wait until half-way through the month before giving their 2 weeks notice.

[daycaremum]

What is so bad about giving a refund of money that the deserve back? Perhaps it is a budgeting issue? I don't spend money that I haven't "earned" yet. What I mean by that is that I wouldn't spend all the money that they pay in advance, perhaps you should have a reserve for just in case situations.
To have savings is a good idea regardless of what you do for a living.

[itlw8]

I do refund the money BUT I make sure it has cleared first so they may need to wait a few weeks to get the refund. Just like going to Walmart the check has to clear unless they paid in cash.

[EAP]

Originally Posted by daycaremum

What is so bad about giving a refund of money that the deserve back? Perhaps it is a budgetplace.ssue? I don't spend money that I haven't "earned" yet. What I mean by that is that I wouldn't spend all the money that they pay in advance, perhaps you should have a reserve for just in case situations.
To have savings is a good idea regardless of what you do for a living.

Not a budget issue - but thanks for the concern??

Just don't want to get into a back and forth with money and families and wanted to know what policies people have in place.

[EAP]

I decided to only allow 2 weeks worth of payments starting in May. Thanks for the feedback -I already have a no refunds policy for deposits and lack of proper termination notice, I may add no refunds starting next year and that way people will stay through their last paid day.

[daycaremum]

Maybe just require a month's notice of termination.

[EAP]

Originally Posted by daycaremum

Maybe just require a month's notice of termination.

That was my original policy when I started but when a situation wasn't working it prolonged it so I switched to 2 weeks.

[MNMum]

Originally Posted by daycaremum

What is so bad about giving a refund of money that the deserve back? Perhaps it is a budgeting issue? I don't spend money that I haven't "earned" yet. What I mean by that is that I wouldn't spend all the money that they pay in advance, perhaps you should have a reserve for just in case situations.
To have savings is a good idea regardless of what you do for a living.

I agree with this.

[EAP]

Originally Posted by MNMum

I agree with this.

This isn't a budgeting issue, but rather a paper trail for taxes that is my concern - if a parent pays me I have an invoice - if I give a refund I'm not sure how/where to track that. Its just wanting to avoid complications.

[littlemissmuffet]

Why do you only require two weeks notice? I know that's the norm here, but most providers here charge weekly.

I charge month to month, in advance. And as such, I require one full calandar months notice.


Edited: OK. I see where you said you had a bad situation once that caused you to change it to 2 weeks as opposed to a month. But, I would personally move it back to a month. If I term/a client terms and they misbehave or break policy even once during the month termination period, they are termed immediately. That might prevent any future situations if you go back to a month notice.

[Starburst]

Another thing you could do (for future clients) is have them pay a non re-fundable deposit that would cover the 2 week notice and then just try to encourage them to make their 2 weeks notice towards the end of the month (if that makes sense)- probably a lot more complicated but tell them that it's non refundable. Or you can change your policy that you need a months notice.

[CrackerJacks]

I also charge monthly and have a one month withdrawal policy.

" I require one month written notice (on or before the first of the month, for the following month) if you would like to withdraw your child from Xxxxxx. Fees will still be due if the parent withdraws the child before notice is given, or at any given time during the notice. One month’s fees may be paid in lieu of one month’s notice. Termination notice will NOT be accepted while provider or parents are on vacation".

My sons first day of daycare was yesterday for summer camp. I paid enrollment fee, fun activity fee, backpack and shirt fee along with my first two weeks. as soon as I picked him up. He ran to me and told me mom lets get out of here. He started to cry and said he never want to go back there. He even said mom I know sometimes I dont listen to you but please don't take me back there. I dont feel safe. that was the trigger. I called the daycare that night and told them I wasnt taking my son back there to give me a call. I asked to speak to the director.. Well she kept on sending me to the assistant. I explained my concerns and told her I understand if you keep the enrollment fee and I will pay for that day. however, as a parent my concern is my son not wanting and not feeling safe. I did not accuse them of anything however, her response was that they will not refund me at all. I told her even as a parent concern when your own child tells you that they do not feel safe at the place. She said she will need to talk to corporate and I told her please let them contact me. I still have not heard from them.

[Blackcat31]

Originally Posted by Unregistered

My sons first day of daycare was yesterday for summer camp. I paid enrollment fee, fun activity fee, backpack and shirt fee along with my first two weeks. as soon as I picked him up. He ran to me and told me mom lets get out of here. He started to cry and said he never want to go back there. He even said mom I know sometimes I dont listen to you but please don't take me back there. I dont feel safe. that was the trigger. I called the daycare that night and told them I wasnt taking my son back there to give me a call. I asked to speak to the director.. Well she kept on sending me to the assistant. I explained my concerns and told her I understand if you keep the enrollment fee and I will pay for that day. however, as a parent my concern is my son not wanting and not feeling safe. I did not accuse them of anything however, her response was that they will not refund me at all. I told her even as a parent concern when your own child tells you that they do not feel safe at the place. She said she will need to talk to corporate and I told her please let them contact me. I still have not heard from them.

How old is your son and did he elaborate as to why he does not feel safe? That seems to be a fairly broad statement so just curious as to the specifics.

As for refunds What does your contract say about refunds?

[Cat Herder]

It could be something as simple as feeling more freedom for the first time and he was not sure how to function in a group of kids independently.

For some kids, not having learned to be with peers as the primary relationship, instead of the adults, suddenly being expected to go be a kid can come as quite a shock.

They are expected to be one of a group, not the center of focus and would not have access to an adult in anything other than a supervisory capacity. He may not have learned that his peers are kids, not adults. This is a really common problem.