Last updated February 16, 2024
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What is a Child Care Contract?
A Child Care Contract outlines the terms and conditions when a client (e.g., parent or guardian) hires a caregiver to provide care for their child or children.
A Child Care Contract is also known as a:
- Daycare contract
- Babysitter contract
- Babysitter agreement
Our customisable template allows you to specify the duration of services that best suits you and your children’s needs, whether it be occasionally, for a fixed term, or indefinitely.
Child Care Contracts exist to eliminate confusion surrounding the particulars of childcare services. Generally, they should include the following details:
- What services will be provided (e.g., supervision, meal preparation, educational or extracurricular activities, etc.)
- Payment information (e.g., payment methods, payment schedule, how late payments will be handled, if deposits are required, and the overall cost of services.)
- The available facilities or materials that belong to the client (e.g., vehicle, kitchen access, etc.
A Child Care Contract may include additional protection clauses such as:
- Confidentiality: Prevents the child care provider from disclosing personal information related to the child or their parents/guardians.
- Duty of Care: Specifies that the child care provider must maintain a reasonable standard of care for the child or children.
- Limitation of Liability: Helps to limit the service provider’s exposure to lawsuits, depending solely upon the circumstances.
Who should use a Child Care Contract?
Parties who wish to define the terms and conditions of childcare services formally use Child Care Contracts. They typically are:
- Parents or guardians hiring a freelancing child care provider or child care organisation
- Daycares, after-school programs, or other related organisations that are required to provide information regarding their services
- Babysitters and au pairs who want to solidify their working arrangements with clients. Note that au pairs operate under different terms than nannies or babysitters (e.g., living arrangements and pay)
Who should not use a Child Care Contract?
If a child care provider is classified as an employee, they shouldn’t use Child Care Contracts. Instead, they should use Employment Contracts to outline their working arrangements.
Only child care providers who are self-employed independent contractors, should use Child Care Contracts.
If you’re unsure whether a child care worker should be classified as an independent contractor or employee, ask the following questions:
- Will the child care worker choose their own hours and work methods?
- Will the child care worker decide what meals to make for the children?
- Does the child care worker work for more than one client?
- Does the child care worker invoice the client for their pay?
If the answers to these questions are “no” then the child care worker would most likely be classed as an employee and entitled to employment benefits.
Why is it important to use a Child Care Contract?
Child Care Contracts are important because they provide clarity and help to ensure that the parties avoid misunderstandings and disputes. In addition, Child Care Contracts establish a record of a worker’s status as a contractor, rather than an employee.
They also protect the interests of both parties and can be used when seeking legal recourse if one party does not fulfil their side of the arrangement. For example, if a client doesn’t pay, the child care provider can use the contract to prove the client’s payment obligations.
It’s important to use the proper documents when dealing with children. For example, parents and guardians might also use a Child Medical Consent Form to give someone the authority to make medical decisions for their child when they aren’t present. Similarly, parents and guardians can use a Travel Consent Form to prove they consent to their child travelling domestically or internationally without them.
How are child care costs calculated?
To charge clients the correct amount, child care providers need to establish the following in their contracts:
- Billing rate, which is also known as a flat fee or hourly fee.
- Deposit amount, if they choose to charge one before providing care
- Payment schedule, how often or when payments are made.
- If late fees are applied to missed payments, and how much if so.
- Whether the sales tax is included in the price or added to it.
How do I cancel my Child Care Contract?
Cancelling a Child Care Contract varies depending on the situation. If both parties agree to cancel the contract before any child care has taken place, they can simply walk away from their arrangement. They have the option to record the cancellation with a Termination Agreement.
If one party wants to cancel the Child Care Contract, they may have to give the other party proper notice. Within your Child Care Contract, you can outline a notice period in which either party can terminate the contract early.
The child care provider may want to address partial payment for services in the contract. Providers often require partial payment if a client terminates the contract after they’ve invested large amounts of time and resources.
Our template allows you to add specific cancellation policies as additional clauses to your contract.
