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[quote=Anonymous]MB here and I agree with 12:51 - I'd go with paying her through her vacation and not having her come back after that.  That's assuming that things are cordial and calm enough that you're ok w/ her being in your house/watching the kids etc... for the remaining time.  You should also be prepared for the possibility that she'll be upset and just want to leave that day.  But if possible, take the high and gentle road.

Re an explanation, perhaps you could just say that the families' needs are changing and you couldn't in good faith renew her contract for another year.  Hand her a reference letter that compliments what you can compliment, and then focus on thanking her for her good work this year, wishing her the best, reiterating the month paid notice etc...  Don't get dragged into specifics, or into having to fabricate lies you'll feel crummy about (and she will probably see through).

If really pressed you could couch the truth in a nice way.  "You know, I think you would be so fantastic for a first time mom for instance.  We increasingly are needing ways for our kids to be outside/actively engaged in their activities, etc...  So I just don't think we're a great fit, but that's not a reflection on you - just the reality of our changing/growing family's needs."
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