LawDepot’s simple questionnaire collects all the necessary information needed to feel confident about your Child Care Contract. Our template includes information such as:
1. Provide party and service details
Include the childcare provider’s qualifications, including first aid certifications, education, and experience in the contract.
Also include what services the childcare provider offers, such as food preparation, learning activities, and supervision of children. Include the name of the client (the parent or legal guardian) and, optionally, the name(s) of the children and their age(s).
2. Outline billing and payment details
Childcare providers are usually responsible for setting their billing rates and payment processes. The childcare contract should include any late fees, taxes, and deposit amounts.
Billing rate
Childcare costs vary widely based on what the service includes. For example, a daycare that provides transportation and bus services would have a different payment rate than a neighbourhood babysitter that takes care of the children in-home.
Your billing rate will be determined by:
- The experience and skills of the child care specialist, including certifications and education
- Services provided, including costs of serving meals, snacks, and enrichment activities
- Whether the contract is temporary or long-term
Childcare providers commonly bill for services based on a set hourly rate (determined by the childcare provider, paid based on hours worked) or a flat rate (billed at regular intervals, often monthly or annually).
Paying deposits
Before receiving childcare services, the client often pays a deposit to hold their spot and confirm services. The deposit amount is usually determined by:
- The childcare professional’s trust and relationship with the client
- The client’s finances
- Market rates for childcare and deposits
Invoices
The contract will set out how often the child care provider will invoice the client (e.g. monthly) and how long the client will have to pay (e.g. 30 days). The contract may also set an annual interest rate to be added to overdue payments. Remember that the rate you set must be reasonable to be enforceable.
Sales tax
Independent contractors are responsible for collecting sales tax on their services for the Canada Revenue Agency. GST/HST is set according to the applicable rate in the province or territory where the services are provided. Childcare providers can claim business expenses on related childcare supplies.
3. Specify your clauses
Include additional confidentiality, duty of care, and limitation of liability clauses in your contract for extra protection.
Confidentiality defines “confidential information” and mandates that neither party may share or use the other party's confidential information without authorization.
Limitation of Liability limits the legal action a client can take against the child care provider. The aim is to protect childcare workers from litigation in circumstances where the childcare worker has not acted negligently.
Duty of Care is the legal obligation to protect the individuals in care and not cause them harm deliberately, recklessly, or negligently. This duty exists whether or not it is stated explicitly in the contract. If a babysitter decides to leave midway through their shift, leaving the children unattended, and the children get hurt, they would be liable for negligence and breaching their duty of care.