Defining a Daycare Contract
A daycare agreement is a written document or statement, often called a contract, that addresses the important details necessary for the continued and day-to-day care of children in a daycare setting. A comprehensive daycare agreement covers the general requirements of operations as well as specific issues associated with any unique circumstances that exist. The relevance of a daycare agreement is based on its ability to set a clear and mutual understanding between all parties involved as to the scope of the daycare business, hours during which children will be cared for, the costs to parents, and other important issues including whether certain expectations are being nurtured in the context of child development .
Without a daycare agreement, important considerations can be inexplicably overlooked, easily resulting in misunderstandings, unmet expectations, and even worse, a level of care that is less than what should be provided to children. The facts and circumstances described in a daycare agreement can also be used as an attachment or reference sheet to other policies and guidelines that may naturally exist in a daycare context such as emergency preparedness guidelines, procedures for illness or injury, procedural requirements for refunds or cancellations, and even personal items that should or could be brought to the daycare facility by parents for their children.
It is important to understand any daycare agreement in light of the laws and regulations governing the operation of daycare facilities in a specific state so that it covers all necessary requirements that may be mandated by state law.
Elements of a Daycare Contract
A well-drafted daycare agreement should include the following components and terms:
Contact Information: The full names of the parties, their addresses, telephone numbers, and email addresses. This also includes the addresses and phone numbers of the daycare center and providers.
Hours of Operation: Days of the week and hours the daycare center will be open, including any holiday or vacation schedules.
Care Offered: The types of care services provided, such as infant, toddler, preschool, and before- and after-school care.
Payment Terms: Hourly and weekly fees, payment schedule (in advance, weekly, monthly), late fees, and penalties for bounced checks.
Absences: Policy regarding fees for days the child is absent.
Vacation/Sick Policy: Amount of time paid for vacation and illness.
Termination: Notice required for the termination of services by either party.
Limitation of Liability: A provision that states the daycare is not responsible for injuries to the child, other than those caused by the daycare’s negligence.
Health/Medical Policies: Requirements for immunizations, medical check-ups, and special dietary needs.
Transportation: Whether transportation is provided by the daycare operator. State the terms of any bus and/or field trip services offered to children.
Release of Liability: A release of liability for injuries to the children, except in situations where the childcare provider is negligent.
Sample Daycare Contract Provisions
Below are samples of some of the key clauses that you’ll need to include in your daycare agreement to protect you and your clients:
Health & Safety Policies. Your agreement should include information about your facility’s health & safety policies, including:
Pickup & Dropoff Procedures. You’ll also want to cover your dropoff/pickup process in your agreement.
Behavior Management. You should have a separate behavior management policy that outlines potential disciplinary actions, including when in-home discipline is allowed and when it’s not.
Modifying the Daycare Contract
When tailoring the daycare agreement to the specific circumstances of the daycare center/crèche, a client should discuss which terms of the agreement may require a particular arrangement. Each clause may have to be adjusted to suit the individual center or the state jurisdiction in which the business is registered.
For instance, operating as a sole proprietary ("an individual") or partnership will also make a difference. For example, if two individuals own the center, which one is responsible for signing the agreement and bound by it? The business will need to adopt a policy for governance and the authority of each partner for regular and other decisions for the daycare center/crèche to function properly.
If there is only one owner of the daycare, the agreement will still need to include a provision regarding the termination of the center/crèche’s operations in order for an orderly termination of its business affairs to take place.
Other areas where customized changes to the agreement may be needed include:
Indemnification:
If the center/crèche operates a school on the premises, the daycare center/crèche’s contract with the local school authority may need to be incorporated into the daycare crèche’s agreement as well . Conversely, if the center/crèche provides after school services to students of a local school, one of the terms should address the services performed for students and address any liability that could arise from those services.
Business Permits:
Specific business licenses and permits will most likely be required from government authorities for the center/crèche to operate legally. A term in the agreement that addresses the various permits also will be required. The daycare crèche should include an assurance that the center/crèche will comply with all licensing rules as a condition of the agreement.
Termination:
State laws may be critical to include in the agreement when terminating the business. Besides the circumstances requiring termination of daycare/crèche, the agreement might need to define what constitutes good cause and explain the interaction between the state laws and the agreement.
Dispute Resolution and Governing Law:
The commercial terms and methods to address a variety of disputes are similar across various states, but there will be subtle differences based on state laws.
Legal Factors in Daycare Contracts
Few parents have the legal know-how necessary to catch, for instance, an attorney’s eye "What I believe is a blatant waiver of liability," says Susan Gudeman. "I’m sure there are dozens of provisions which would invalidate the agreement if our child was ever injured, and this could have long-term ramifications." A good daycare agreement must be written in accordance with your state’s laws, at the very least. In addition, you must sign with a licensed care provider (a commercial daycare or a homecare provider) who will carry proper liability insurance. Morningstar Childcare’s Susan Gudeman notes: "Having made all the mistakes about clandestine sitters and compulsive day-care shoppers, I was skeptical about the existence of a liability insurance policy I could count on. After a lot of research, I found that such a policy does exist. Although each state has different requirements regarding this, I am now a believer in keeping medical child care coverage as well as a large liability policy on my home in place for any injuries my child might incur with an unlicensed sitter." If you choose a person to watch your child who is not a licensed daycare provider, make sure they have ample coverage in place as well.
Analyzing and Revising Your Daycare Contract
A daycare agreement is not a document that you can draft once and re-use in perpetuity. A daycare agreement that is a year old may not sufficiently cover your current business practices. Laws and parental expectations change over time, and it is important that your daycare agreement evolve along with them. Consider revisiting your daycare agreement on an annual or semi-annual basis , reviewing the following: It is not required that you seek professional assistance when reviewing and updating your daycare agreement, but it can be very helpful. A trusted legal advisor will be familiar with your business practices (if you already have a daycare agreement) and can suggest language to ensure that your agreement is as effective as possible.