What Exactly Is A Daycare Contract?
A daycare contract is a legal agreement between a daycare provider and a parent that lays out the terms of the service that is to be provided. A formalized contract is necessary for the protection of both parties involved. It outlines the expectations of the contracting parties and gives an overview of all liabilities and obligations of both the parents and provider. With a daycare contract parents can know exactly what they are getting into upfront . Likewise, so can the daycare. Most importantly, a contract can become useful in case any of those parties default. Having everything listed contractually makes it easier to hold either party legally accountable. There are many important factors that should be taken into consideration and included in the contract to make sure that there is no ambiguity on the obligations of either party.
The Elements Of A Daycare Contract
A daycare contract should be simple enough to understand yet comprehensive enough to cover all the important details important to both the daycare center and the family. There are some things that you want to make sure are in your contract while other things can be merely included in either the parent handbook or your set of rules in your policies and procedures manual. You need to decide exactly what you are looking for in your daycare contracts.
Payment Terms: One of the most important aspects of your daycare center’s contract is the payment terms. This is when payment is due and any late fees charged. For instance, payment is due in full on the first Monday before classes begin and any payments received after Wednesday are subject to an additional $25 late fee per child. Payment can be made by check, money order or cash. Cash is only accepted during business hours. All returned checks will incur a $25 service fee that must be paid before the payment is considered valid. All returned checks and the service fee must be received by the end of the current week of the contract date. At the end of 30 days from the contract date, if the returned check has not been made valid, it will be sent to our sought after collections agency for collection.
Schedule: A daycare contract is also an important means of outlining the schedule. Examples would be a typical schedule such as 7:00 am to 6:00 pm or the contracted schedule such as Monday through Friday 6:30 am to 5:30 pm. You may also want to consider including holiday schedules, snow day policies and vacation schedules. Your contracted schedule will be in your agreement and your holiday schedule may be put in your handbook. For example, there are no classes on April 7 and April 10 due to the scheduled Spring Break.
Termination Clause: Your agreement should also have a clause that explains how either party can terminate the contract. It should also explain how soon notification for termination must be given to the other party. Depending on your daycare center’s policies, this clause can be different for each contract. For instance, both parties must be notified two weeks prior to termination of the contract.
Responsibilities of Parties: What is expected of the parents and of the daycare center should also be included. You must spell out exactly what is required of the parents. For example, parents shall notify the daycare center within the first hour of class if their child will be absent that day. They also must notify the daycare center a minimum of 15 min. ahead of a change in their regular pickup schedule. You must also include what is expected of the daycare center.
Daycare Center Policies and Procedures Manual: This policy outlines additional important information important to everyone in the daycare center. You can state that the parent handbook and/or the policy and procedures manual are made a part of the agreement by reference. For example, I understand and agree that I have received a copy of the Parent Handbook and understand fully all the policies and procedures outlined therein. (Insert signature here.)
Necessary Daycare Policies
Health and Safety Policies
These policies outline the requirements for a safe and healthy environment for the children. Usually this includes emergency contact information for parents and the provisions they have in place to ensure their children’s safety and well-being.
In some cases, you may find more detailed health and safety requirements which should go beyond the basic categories listed above and speak to things like:
If you believe that your daycare may not be adhering to these requirements, then you may want to consult an attorney.
Late Pickup Policies
While most teachers view tardiness as a personal failure to arrive on time, with the importance of being on time in our society, the truth is that even more responsibilities lie with your DC providers to ensure their own personal adherence to the same standard and to establish a plan for late pickup in the eventuality that it occurs.
While many are no doubt fearful of charging fees and setting strict standards, the truth is that with the owner’s commitment to the children’s welfare comes the obligation to establish a clear framework within which parent’s must work, in order to best serve the child, and also with the admission of the owner that he is a businessperson, and not a babysitter.
Nutrition Policies
As with health and safety policies, nutrition policies may be considered under the general category of health and safety. However, in particular, families may feel strongly about the types of nutrition given to their children, from organic food proponents to nutritional guidelines for toddlers.
Nutrition is especially vital if you have children of a special dietary category, such as gluten-free, lactose intolerant, or vegetarians/vegans. Failure to adhere to the dietary requirements set by parents may not only violate the daycare contract, but may also lead to illness or discomfort for the child.
Especially if your child has any special nutritional needs, be sure to discuss them with the daycare manager or administrator before signing a contract.
Napping Policies
Naptime is a very important part of the daycare schedule. Although sleep patterns vary across ages, most children can and do participate in naptime, as part of the daycare’s routines. Most childcare facilities have established policies for early and late napping, such as strategies for relocating children to quieter spaces during naptime.
Napping policies may apply to parents as well as children, outlining drop-off schedules and the time frame for pickup. Many daycare facilities have designated periods of time, often scheduled, during which parents are expected to drop their children off and pick them up. Falling outside of these windows may result in fee payments or even termination of the contract. Make sure to review these policies and ensure that they’re reasonable for your schedule.
Discipline Plans
Discipline policies and plans are often built into the daycare’s structure and schedule. Daycare facilities are required to follow strict policies for conduct toward children, including how to approach inappropriate behavior. These policies outline exactly how the daycare providers plan to maintain a safe and healthy environment for your child.
Failure to adhere to any of the policies and provisions of the daycare contract may result in a lawsuit. If you would like to speak with an attorney about your daycare contract or if you believe your daycare is withholding your deposit or otherwise violating its contract, contact a family law attorney immediately for assistance.
Daycare Contracts And The Law
In the context of daycare contracts, the federal law that is most relevant to parents is the Child Abuse Prevention and Treatment Act (CAPTA). CAPTA requires comprehensive background checks of child care providers. Parent should be aware their daycare has complied with CAPTA.
Parent should also familiarize themselves with any state or local regulations governing daycare centers. Most states have laws and policies regarding the licensing of child care facilities. Under most state’s laws, daycare centers are subject to certain inspection requirements for both hygienic and safety purposes. It may be appropriate to ask for documentation that your provider meets all local health and safety codes. It is also wise to find out if there have ever been any OSHA complaints made against the facility.
If a breach of contract occurs , the harmed party has the right to either rescind the contract, return the child to the parent and demand damages or affirm the contract and demand damages. For a court to dissolve a contract, the breach must be of a great enough magnitude to defeat the purpose of the contract. In general, the innocent party will choose the remedy of rescission when the breach is material and serious, such as a gross deviation from the contract’s stipulations.
A daycare contact will often require modification in the event of a substantial change in the circumstances of the parties. For instance, if the daycare center expands, new policies may need to be added. Parents should be aware that notwithstanding modifications, unless the changes are memorialized by the parties, they may be deemed no more than informal statements of future intention that lack binding force.
How Parents Can Review A Daycare Contract
When reviewing a daycare contract, parents should carefully consider the following aspects:
- Does the contract clearly state the cost of care, when payment is due, and what form of payment is acceptable? If the daycare offers additional services for an extra charge, such as evening or weekend daycare, does that get listed in the contract and how it will be billed?
- Has the daycare provided the parents with its policies and procedures? Or has the daycare agreed to provide the parents with a copy of its policies and procedures shortly after the contract has been signed? The daycare should also have a sufficient inspection record from the Department of Human Services.
- Does the contract address transportation for the child (if the daycare agrees to provide transportation for field trips or other trips)?
- Does the contract terminate automatically or yearly? If it terminates automatically, does it state the provision that requires the parents to provide the daycare with a specific number of days notice prior to terminating the daycare, and does it state the provision that requires the daycare to provide the parents with a specific number of days notice prior to terminating the daycare?
- Are the days and hours that the daycare is open and closed listed in the contract? If the daycare restricts the number of weekends it is open during the year (for instance, only being open on the first two Saturdays of the month), is that restriction listed in the contract?
- Does the contract provide the daycare with the right to ask the parents to leave the daycare if they fail to abide by the terms of the contract and/or the policies and procedures?
- Does the contract require the parents to answer every question in the enrollment packet prior to the child starting at the daycare?
- Does the contract allow the daycare to adjust the price of daycare without providing the parents advance notice?
- Does the contract require a non-refundable deposit in order to hold the spot for the child at the daycare?
- Does the contract forbid the parents from bringing legal action against the daycare for any reason? If the contract contains that language, are you comfortable waiving any right you have to pursue legal action?
- Does the contract require the parents to waive their rights to receiving a criminal background check on the daycare’s employees? If the daycare is going to be caring for your children, you probably want to know if it has a history of having employees with criminal records.
- Does the contract require alternative dispute resolution to solve disputes, as opposed to allowing the parents their right to file a lawsuit in civil court?
Daycare Providers: Constructing An Effective Daycare Contract
When considering what to include in your daycare contract, you should be sure to only include clear, unambiguous terms that protect your business. Unlike many other types of contracts that are required to be specific per state statute (such as homeowner association agreements), daycare contracts can be as short or as long as they need to be to functionally protect you and your business. The best practice is to include every relevant term to your business of which you want clients to be aware. This includes the following:
Days and hours of business operation
Payment terms
Requirements for parents if there will be a "caregiver absent" day
Provisions for adjusting payment terms if the daycare provider has to take time off due to an emergency
Procedure for initiating holiday, vacation , or request for extended leave time
Explanation of any requirements the daycare provider may have for parents or children
Signatures
Offered policies
Policies not posted or included in the contract itself, but offered as a separate document to parents should be briefly explained in the contract itself and referenced within. This way, parents will be aware of the policies even if they request a daycare contract without policies.
Daycare providers that do not use formal daycare contracts indicating policies or terms and conditions for remaining enrolled at their daycare risk litigation. Since it is imperative for daycare businesses to have adequate risk mitigation in place, including robust daycare contracts, it is also important for them to create policies for parents and children that are fair yet protect their business’ best interests as well.
