Wednesday, June 30, 2010

Back To Basics #2

THE CONTRACT

The number one rule of home daycare - have a contract. In this day and age you simply can not operate without a contract. Contracts set out clear expectations that must be followed to ensure your needs are met and that you, as a provider, are getting what you deserve.

The biggest mistake by providers is not enforcing their contract. It is all well and good to have a contract. It's even better to have an iron clad contract ten pages long and covering every imaginable scenario. However, if you fail to enforce the contract you might as well operate without one. The contract must be enforced at all times. Allowing even the simplest contractual obligation to be violated sets the provider up for problems. Parents assume that if they are permitted to violate the contract even once they are then given permission to disregard it all together. Enforce the contract.

What should a contract include? That answer depends on what it is that, you, as the provider, want and need from both the children in your care and their parents. You have to decide what it is you simply will or will not tolerate and put emphasis on those aspects of your contract.

At the very least a good contract should cover the following items:

Hours - clearly stated open and close hours or contracted hours are essential. Without clear expectations concerning the hours of care other aspects of your contract such as fees and late policies will be redundant and impossible to enforce.

Fees - fees must be clear. It must be set out in such a manner that all fees within your care are not negotiable.

Payment - always have parents pay in advance for care. Never, ever risk working for free. Contracts should have a section wherein payment is discussed. Always require payment to be made on the first care day of the week or month for THAT week or month coming up. Please be clear that failure to pay will result in no care being made available. Never work for free!
It should also be stated that payment is due for ever day regardless of attendance. Make it clear that paying for daycare is about paying for the availability of a spot being held for a child and not the actual days used.

Holiday and Statutory Pay - always require payment on all civic and statutory holidays. However, to save yourself the hassle of a sneaky, loop-hole looking parent, simply list the days you will be closed with pay and leave it at that. Do not label them as a 'holiday'. Simply state, for example that December 25th is a paid day off. All parent whose child would normally attend on the day a holiday falls will pay full fees for that day. Also, include in your contract that if a holiday falls on a Saturday or Sunday either the Friday or Monday will be taken as a paid day off in lieu of the holiday. Most of your daycare parents are getting these paid days off and so should you.

Illness Policy - your daycare should be known as a well-child facility. Every contract should clearly state that children will not be allowed into care while ill. Be VERY specific with illness policies. List every single communicable illness as exclusion from care. If you are not sure which illnesses are included visit the website of your local public health unit. All children should also be excluded from care for 24 hours should they have vomited, had diarrhea or a fever. Also, ensure you have a section that addresses any sneaky parents who chose to violate your contract by medicating their children and masking symptoms. Make it straightforward that any child who is sent to care in direct violation of the illness policy will be promptly terminated. Your contract should demonstrate that there will be no mercy or second chances given to children who are sent to daycare sick. Last but not least, have this one line in your contract that is a catch all for everything and allows, you, the provider to always have the final say:
"The final decision as to the care of any child will be left to the discretion of the provider"

Nap Time - often the thorn in the side of many daycare providers is nap time. I often hear of providers who work ten or more hours without a break because a child will not sleep or a parent has requested a child not nap. Your contract has the ultimate power to provide you with a break during the day and happy, rested kids in the afternoon. "Nap time is mandatory and required by ALL children to ensure continued care". That's all you have to say. Enough said. Now, make sure you enforce it.

Termination - two weeks notice seems to be the industry standard but in my opinion this is not enough. I often hear of providers who receive notice but are shorted on pay. Remember this and remember it forever - you are only of value to a parent as a daycare provider until they no longer need you! Once you are no longer needed there is no incentive for a parent to pay you and thus maintain an amicable relationship with you. For that reason all providers need to amend their contracts with regard to two week's notice. Notice does not pay the bills; money does. Therefore from hereon in state in your contract that as soon as either the provider or parent gives notice of termination of services then two weeks FEES are due and payable right then and there to ensure even one more day of care. Remember, money talks; everything else are just words. Also, make it known that in the case of termination NO fees paid will be refunded.

Probationary Period - oh, how often I have been forever thankful for the probationary period. This clause of the contract essentially allows both the parents and provider to walk away from the contract and daycare relationship within the first three weeks without notice. Every provider needs to include this clause. Never again will you have to listen to, and then feel guilty for terminating a child who has done nothing but scream non-stop for the first two weeks. Simply invoke the probationary clause, bid them farewell, go visit the liquor store and then sit on your patio and thank the heavens above that you included that clause.

Have a contract. Enforce that contract. Live happily and stress-free. That's all that is required.

If anyone wishes to view a copy of my contract you may contact me directly. I am always happy to share and help other providers develop into mean, lean, daycare business machines!

Monday - Back To Basics #3 - The Interview



For concerns, advice or suggestions I welcome your email at judytrickett@yahoo.ca

4 comments:

  1. I have enjoyed your back to basics posts so far Judy! Very very helpful for those who want to start up in daycare. I have almost completed two months at my new job in a law office and let me tell you, if I ever do decide to get back into daycare, I will have a very well worded polished contract due to this awesome experience I'm gaining on the job! My boys are enjoying their time on their own and I'm hoping this was the right decision but I'll always look back fondly on my 10 years of providing childcare and I'll always encourage new moms to think about this as a great way to be home with your children and earn an income as well!

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  2. Having just had a breach of contract and termination happen to me, I'm rethinking my whole contract! I had a teacher family who assured me the child would be sent 1/2 time over the summer (which is what my contract requires) decide they would only be sending the child 1 day per week for the summer. I said no and they said well then consider this our notice and we'll come back in fall if you still have space...I think not!! So your blog has come just at the right time for me! Thanks!!

    Nyx

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  3. I have a probationary period of 6 weeks (just like my termination policy). I have often been blinded by the first 2 weeks of care thinking things will be better or that in just one more week things will improve. Highly recommended.
    Qwerty

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  4. I have been thinking about staying home with my boys for a while now. I found this blog while I was looking for more info on how to open a home child care and I really like the way you have explained the process. Thank so much. I am just wondering if you could send me your contract to help me make mine too. kittykat024@gmail.com

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