Daycare Termination Policy: The Complete Guide for Managers

Table of Contents

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How to Create a Daycare Termination Policy 

You should create a daycare termination policy for clients to ensure that both the daycare center and the client are satisfied with the terms of their agreement. The daycare termination policy should include what happens when either party terminates the contract. It also must outline how much notice needs to be given before terminating and how to handle any outstanding fees. 

There are a few ways to enforce the daycare center termination policy with parents. For example, you can submit warnings or reminders to parents of behavior or situations that break the agreement. You can also regularly send newsletters to remind all parents of common issues that happen with more than one family.  

Parents may be less likely to sign a contract if they are not comfortable with the agreement. You must make sure that the contract is fair and enforceable. 

You also need to make sure the parents understand the contract before signing. If they do not, let them ask you questions about it or have them read it again before signing. 

You should document all conversations with parents about the contract. And keep copies of any signed contracts on file so you can refer to them in the future if necessary. 

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Termination Policy Details 

The daycare termination policy should include all the information a parent may need when their enrollment with the daycare center is being terminated. This includes when and how they will be notified about this decision and what happens if they have made any payments. They should also understand what happens if there are any outstanding fees or fines. 

This document should include: 

  • Termination notice period 
  • Termination fee 
  • How to dispute charges 
  • What happens after termination 

Below, we'll outline a few common situations to include in the termination policy.  

Late Payments 

Late payments are a common issue for daycare centers. They can cause the center to lose money and potentially expose parents to pay late fees. 

To prevent this issue, daycare centers should include late payments in their termination policies. This will help the center set expectations with parents. It will also help avoid any confusion or miscommunication that can happen when a parent claims they didn't know they would incur late fees. 

Inability to Meet Needs 

It is important to have an inclusion policy in your daycare centers. This is because children with disabilities have needs that are different from other children. An inclusion policy ensures that all children’s needs are met and that they get a chance to be active participants in the daycare center. 

However, some disabled children require more care than a daycare center can provide. For example, children having difficulty adjusting to the daycare or not making progress in their developmental milestones. In these cases, it may be time to consider terminating the daycare. 

Lack of Preparation 

Some parents tend to forget to provide important materials for their children regularly. These materials often include diapers, wipes or food. This can cost your daycare center a lot of money and it's unfair to the other children you care for.  

Including materials and supplies requirements from parents in your daycare termination policy ensures parents have clear expectations.  

Disruptive or Abusive Behavior 

Including disruptive or abusive behavior as a reason for termination in your daycare center's termination policy is a must. It is a way of protecting the children and yourself from potential abuse or harassment. It also prevents subjecting the children or staff to any other form of physical or emotional violence. 

Some parents cannot control themselves and fly off the handle for simple reasons. If you are dealing with a parent like this, be sure you outline the consequences clearly.  

Sometimes children also have out-of-control behaviors that disrupt the center. You should include this situation in your policy as well.  

Consistently Late Pickups 

Parent pickups are an essential part of childcare. They are the final step in the daycare process, and without them, you can’t provide the best care for the children in your center. 

As a childcare provider, it is your responsibility to make sure all parents pick up their children on time. But because not all parents do this, you need a policy in place for when this happens. 

Some daycare centers terminate contracts with parents if they consistently arrive late for pickups. This is because it is important to set clear expectations and consequences for every situation. This way, everyone knows what they are getting into when they sign up with your center. 

Misaligned Values   

The most important thing to remember is that your termination policy should reflect the values of your company. You might want to include misaligned values as a reason in your daycare termination policy.  

Daycare Policies and Procedures for Termination  

Daycare termination policies and procedures ensure the safety of children. They are also a way to prepare parents for the possible reasons for termination of their child's daycare placement. 

The termination process can differ depending on the daycare center. Every center will have different termination policies and procedures in place. However, there are some similarities in most daycare centers. 

Daycare termination policies are set up to protect the daycare center and the children in their care. You must explain termination procedures in detail in the contract that parents sign when enrolling their children. 

Include a Daycare Trial Period  

Trial periods are a great way for daycare centers to reduce the number of dropouts. They also help parents make sure the daycare center is a good fit for their children. 

A trial period is beneficial for both parties: parents can see if their children like it and the daycare center can see if the parents and children will be a good fit. 

 

 

Tips for Terminating Daycare Clients 

Amimation of a Man with a Lightbulb for a Head

This is a very difficult situation for any daycare provider to be in. You want to provide the best care for the children in your center and keep your business open. These tips will help you with this situation and make the process as easy as possible: 

  • Keep in mind that this is a difficult time for both of you. 
  • Consider how much notice they need before their last day. 
  • Allow the kids the opportunity to say goodbye to their friends if they are still at the daycare center when the child is leaving. 
  • Provide them with a letter of recommendation if they are leaving on good terms. 

Below are best practices your center should follow to ensure terminations run as smoothly as possible.  

Keep Accurate Documentation 

A daycare provider must keep accurate and detailed documentation. This is because it can help them be better prepared for any changes that may happen. It can also help them provide better care for the children in their care. 

Inaccurate or incomplete records are a huge problem for daycare providers. It can lead to problems with staffing and legal consequences for the provider. Some of these records include: 

  • The person's name 
  • The date and time the child was dropped off 
  • The date and time the child was picked up 
  • A description of any injuries sustained by the child while at daycare 
  • All medications administered to the child while at daycare 
  • Any allergies or dietary restrictions that may affect a child's care 
  • Any situations with children that go against the center’s policies 
  • Any situations with parents that go against the contract 
  • A copy of all warnings or notices issued to the parents  

Keeping accurate and detailed documentation helps avoid legal issues. For example, let's say a parent notices that their child has a rash on their arm. If the provider does not have any documentation of the rash, the parent may think that the provider is neglecting their child. 

Give Warnings 

It is a common practice for daycare providers to give parents warnings. They do this to make sure that the parent understands the consequences of their actions and to avoid any issues in the future. 

Daycare providers should provide parents with warnings when they break the center's policies. The main reason for this is that it can help avoid any future problems or misunderstandings between the parents and providers. 

You should submit warnings in writing. Warnings should state that if parents continue to break the daycare contract, you must terminate the contract. You should also provide an opportunity for parents to speak with a manager or director about any concerns. 

If the problems that come up can be resolved, a meeting with parents before issuing a warning is important. This gives both parties time to discuss the situation and collaborate to create a solution.  

Don't Say Negative Things 

Daycare providers should never say negative things about problematic parents. They need to be understanding and know that these parents are trying their best with the resources they have, but sometimes it just doesn't work out. They need to be kind but firm in their approach when dealing with these parents. 

If the daycare provider decides to terminate the contract, they should do so in a professional manner. This means they shouldn't say anything that may hurt the parent’s feelings or make them feel worse about themselves. 

They should focus on what the parents did well and how they were good parents to their children. They should also make sure to give them references for other daycares or preschools in the area. 

Keep It to the Point and Honest 

Daycare providers need to keep terminations to the point and short. This is a difficult conversation for both parties. 

There are many reasons that daycare providers need to terminate a family's services. Reasons include the parents breaking the daycare termination policy or the center cannot meet the child's needs. No matter the reason, a short and focused conversation is best.  

You should make sure you have all the facts so you sound informed and involved. The parent might get angry and storm out of your office. However, if you are calm and understanding, they will be more likely to consider your reasoning. 

The best way to go about this is by telling them the truth and being as calm and understanding as possible. You should let them know you are not trying to hurt them or their child. Instead, let them know you are trying to help them make a better decision for the future of their family. 

When discussing a contract termination with a parent, it's important not to be apologetic or defensive. It's also important not to blame the parent for the termination of their contract. 

Remain Objective 

The daycare provider must remain objective when it comes to terminating a client. They should not let their personal feelings get in the way of their professional responsibilities. 

The first step to remaining objective when terminating a daycare client is to understand the company's policies. Policies will vary depending on the company. Once you have a clear understanding of what happened, it's time to put your thoughts into writing. 

You must explain the reason for termination and how it will affect the child in question. You can also include why they are not a good fit for your daycare by explaining their behaviors or actions that led up to this decision. 

Don't Get Defensive 

Providers must not get defensive when terminating clients. It is often hard to terminate a client because they are like family and it is hard to see them go. 

However, if the daycare provider gets too emotional about the termination, it can cause them to make mistakes. They may say something that will hurt the client and could cause additional issues later on.  

Hand Letters Directly to Parents  

A daycare provider should hand letters to parents when terminating clients. They should write the letter professionally and have it signed by the owner of the daycare. By handing the letter directly to the parents, there are witnesses and recordings of the exchange.  

This means parents can't claim they never received notice or try to retaliate legally. This is another form of documentation. It may be a good idea to have parents sign a statement saying they received the letter.  

 

 

Daycare Termination Policy Sample 

Below is a simple daycare termination policy example. You can use the editable PDF linked from the image or copy and paste the text below. 

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Daycare Termination Policy Sample Text 

Sometimes there isn't a good fit between a child and our daycare center. This could be due to a lack of adapting to the environment or abiding by rules. In this event, our center will reach out to parents to set up a meeting to discuss the problem and how we can resolve it.  

If the child's behavior continues to disrupt other children, we reserve the right to terminate the daycare contract. 

In the event you want to voluntarily withdraw your child from daycare, we require a two-week notice. Parents are responsible for all final payments through the end of the notice whether the child attends daycare or not.  

If the rules and policies outlined in our daycare contract are not followed, we have the right to terminate the daycare contract at any time. If this occurs, parents must pay through the end of the week that termination happens.  

The daycare contract is terminated immediately for the following reasons:  

  • Failure to follow and comply with daycare policies and procedures outlined in the handbook  
  • Failure to comply with the daycare contract  
  • Destructive or abusive behavior by a child that persists after following a plan with parents  
  • Nonpayment of childcare services 
  • Nonpayment of late fees or recurring late payments  
  • Repeated failure to pick up children on time  
  • Failure to show up for daycare for five consecutive days without any communication  
  • Knowingly bringing your child to daycare with an illness 
  • Spreading false information about our daycare center verbally or in writing  
  • Clear and consistent differences in child-rearing between the parent and daycare provider  
  • Disrespecting staff members or staff members' families   
  • The daycare's inability to meet the needs of the child without hiring additional staff members  

This list is not exhaustive and can be updated at any time. The reasons for termination are not limited to this list.  

If for any reason legal services are needed, the parents are responsible for all legal and court costs incurred.  

Daycare Termination Letter Samples  

Pen and Blue Envolope - Daycare Termination LetterTerminating daycare clients is never an easy process. You worry about how the child will react, and there are legal considerations. These sample letters will help you figure out how to communicate a termination with a client.  

Termination Letter Sample 1 

I have enjoyed caring for [Child's Name] since [Beginning Year]. It has been a pleasure getting to know the [Last Name] family; however, I am unable to continue providing childcare services after [Termination Date].  

Please note your remaining balance is $[Amount] and is due by ([Date]. Your deposit of  $[Amount] was applied to this amount.  

Termination Letter Sample 2 

Due to [Issue], childcare services for  [Child's Name] are terminated effective immediately. This is not a personal decision and we have enjoyed caring for [Child’s Name]. Please call to make arrangements to pay final balance and pick up your child's belongings by [Date].  

Please refer to our daycare termination policy if you have any questions.  

Potential issues to include:  

  • Communication issues 
  • Unpaid childcare fees 
  • Outstanding fees 
  • Violent behavior 
  • Late pickups 
  • Inability to meet needs 
  • Misalignment of values  
  • Disruptive behaviors 
  • Not providing required materials  
  • Negative reviews or conversations about the business 

Termination Letter Sample 3 

You are receiving this written notice to alert you of the termination of our childcare services agreement. At this time, I can no longer provide [Child’s Name] with the proper care. The last day of care will be [Date].  

I have enjoyed working with your family. Thank you for allowing me to get to know  [Child’s Name]. I wish your family the best.  

Termination Letter Sample 4  

This written notice is to inform you that in two weeks, our childcare services agreement will be terminated. I cannot offer childcare services for your family after [Date]. Please pay your remaining balance of  $[Amount] by [Date].  

Termination Letter Sample 5  

This written notice is to alert you that childcare services are terminated two weeks from [Today's Date]. The remaining balance for services is  $[Amount] and is due by [Date]. If you have any questions, please review the daycare contract or schedule a time to meet and discuss this decision.  

Below, I have included the number of local childcare resources agencies. They can help you find a new provider if needed. 

I have enjoyed caring for [Child’s Name] and getting to know your family. I wish you all the best.  

Other Information to Include With the Letter  

You should include a note referring to the daycare termination policy if parents have any questions or unpaid balances. Make it clear how much they owe and the date the amount is due. 

If they paid a deposit and it was applied to their remaining balance, you should also indicate this. If they paid a deposit and will receive it back, let them know how and by what date.  

Letting them know they need to make arrangements to collect their child's belongings gives them a strict deadline to do this. Be sure you include a date they need to have this completed. 

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