What are Daycare Contracts?

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  • Written By: C. Daw
  • Edited By: O. Wallace
  • Last Modified Date: 13 February 2020
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Daycare contracts are extremely important when running this type of business, and must be comprehensive and has all of the required security assurances fulfilled. It is a legal and binding agreement between the daycare provider offering the services and the parents that choose to use the service. The contract plays a vital role for both parties involved, protecting them from legal complications, as well as outlining the specifics of the services being offered. As a provider, there is a need to be well-aware about the schedule, benefits and security preferences. On the other hand, as parents, there must be assurances about the provider’s character and background.

A daycare provider must be aware of the mishaps, and other factors, which may take place in future. First of all, include a summary of preferences in the service description such as the hours of services, rates, holidays, exceptions, and the timeline of the contract. There is no need to put each and every detail within the daycare contracts because they can be printed in a separate handbook.


The second key aspect is the conciseness and clarity of the daycare contracts. The agreement must be clear in case a dispute with the parents occurs, which will allow the provider the ability to show the contract to an attorney in order to get favorable results. A lawsuit is much easier to win if the contract is specific and follows the requirements of the area in which the daycare center is conducting business.

Daycare contracts must be constructed in such a way as to contain all the details about the rates, due dates, and penalties for late payments. Similarly, set the payment dates and mention the days off and paid days off as well, in this way the contract will be more legal and beneficial for the provider. State the probation period and its terms and conditions. Also, cover in detail about the termination, and other related aspects, of the contract.

This document is equally important for the parents and the provider. Within the daycare, contracts never mention any details which could harm the business financially or legally, in case there is a dispute between the parents and the provider. As daycare contracts have such a great importance, it is mandatory for both parties to make them as concise, complete, clear, and customized as possible. It is often better to consult an attorney before signing the contract to ensure that all of the local and federal legal requirements are met.


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