Essentials of a Solid Daycare Contract
Whether you store it away in a drawer, reference a few times a year, or skim over it from start to finish on an annual basis, the daycare contract is a document you should familiarize yourself with. It can serve as a very valuable resource in a variety of situations. When you begin to draft a daycare contract, you should make sure that you include the following elements.
Hours of Operation
This is a vital element that is sometimes overlooked. Many parents expect childcare facilities to be available all hours of the day and night. For protection, it is best to clearly state what the hours of operation will be. A drop-in approach may not be within your capacity . You should also include details on tardiness so that clients can be held responsible for plan adjustments that require you to be available outside of your specified hours.
Payment Terms
Due date, form of payment, and criteria for late payment all need to be clearly defined in your daycare contract. You want to make sure that you have a consistent process for all clients. Also include information on prepayment or deposits, and what happens in the event of a bounced check.
Absence
Covering several scenarios is important in the case of a daycare contract. What happens in the event a child misses a day of daycare? Will you charge for absences? To what extent? How will you handle an emergency scenario in regard to payments and services? Include your policies on early withdrawals as well.
Contractual Mandates and Protections
Depending on your state, there are numerous legal requirements you must be aware of when writing a daycare contract. If you haven’t already, it’s a good idea to research this before writing or modifying any part of the document.
State licensing laws. Most, if not all, states require licensing or certification for daycare services. There are associated regulations that go along with those licenses that address child-to-adult ratios, minimum square footage, maximum fees allowed to be charged, and more.
Safety standards. There are safety codes specific to childcare facilities and providers, whether for both home-run daycares and centers or just for one or the other. In addition to explaining the physical safety requirements for daycare, make sure your contract also explains the process for maintaining safety standards. For example, what is the policy for parents visiting the center unannounced? Do you have a policy to allow drop-in visits, if not, explain in this section the hours that are acceptable for parents to do so.
Childproofing. Related to safety standards are childproofing requirements. There are obvious items, such as electrical outlets and no hanging cords, but there are also things like keeping poisonous substances out of reach and having locks on cabinets with items such as prescriptions or household chemicals.
Implementing Effective Policies
Parents want to know what is required of them, what behavior is expected from their children and the staff and teachers want to be clear about their own obligations. Having clear policies is one of the best ways to make sure everyone is on the same page.
When parents first sign a daycare contract, they should also receive copies of the daycare’s general policies, including:
• Behavior management policies – Illnesses and other circumstances that can make children irritable or even cause them to pass viruses among other children is an unfortunate part of childhood. Parents need to understand the rules for dealing with sick children in your facility, including:
o Absence and fees
o When can a sick child split from others?
o Attendance policies for siblings
o Best practices for dealing with illnesses to keep childcare providers and teachers safe
• Parental obligations to keep emergency contact information current – parents need a reminder to keep up-to-date records with the facility so that if an illness or emergency occurs, you have the ability to contact them.
• Pick-up procedures – from simple safety issues to rules regarding who can pick up children and when, safety and consistency should be the priorities.
• Procedures for dealing with emergency situations, such as weather-related closures, natural disasters and what happens to children who are not picked up at the end of the day.
Policies should be clear and easy to understand without any ambiguity. Use clear explanations where possible and avoid slang and industry jargon that may be unclear to parents.
Payment Provisions
Daycare contracts typically include a payment section that outlines the tuition fees and late payment penalties, as well as refund policies in the event a child is withdrawn before the end of a specified period. If you plan to charge additional fees for things like field trips or snacks, address those issues here as well. This section should also detail your policy on tuition increases; try to keep those to an absolute minimum , as most parents view this as a dealbreaker.
For a nanny or babysitter, this section should include how much the caregiver will be paid per hour, whether payment will be assessed daily, weekly or biweekly and whether payment received is considered a retainer for future services or a deposit for a currently rendered service.
Dispute Resolution Provisions
In the event that any disputes arise out of or are in any way connected to this agreement, both parties should agree to discuss the matter in good faith and attempt to resolve it amicably among themselves. Should the parties be unable to come to a mutually agreeable resolution, a neutral third party will be inserted into the process to mediate the matter. The third party mediator will be independent, with no vested interest in the outcome of the dispute. The mediator will take on the task of exploring the potential options available to the daycare or parents for solving the issue at hand and work to facilitate a positive experience for all involved. While every effort will be made to avoid a situation where the courts are required to be involved in the matter, this is a possibility in some limited circumstances or should the terms of the agreement have been violated. Should such a situation occur, both parties are charged with covering their own legal fees, as well as the fees of the mutual representative(s) involved in the case.
Contract Review and Revision
As with anything, it is important to review the contract periodically and make necessary adjustments. For example, if you add a part-time or drop-in schedule to your service offerings, consider whether this should be mentioned in your contract. Or, if you have undergone a significant regulatory change, you may wish to review your contract to ensure that any relevant terms are updated . It is best not to wait too long to review the daycare contract terms, as it is vital that all parents and caregivers understand your policy for issues such as:
If parents have differing contract terms than have already been established, this may lead to confusion so it is best to review the contract with all parents/caregivers simultaneously so everyone understands the same term and conditions.