Using Your Legal Plan

How to Choose a Childcare Provider and Create a Contract

Family & Relationships

3-minute read

When expecting a new baby, one of the most important (and stressful) decisions you’ll make is how to choose a childcare provider. From deciding between in-home childcare and daycare centers to understanding costs, schedules and policies, choosing childcare can quickly feel overwhelming. Knowing what to look out for early – including the importance of a clear childcare contract – can help you make a confident, informed decision for your family. 

Start looking early for childcare 

Whether you’ll be using an in-home provider, a childcare center or a provider coming into your home (like a nanny), start searching before you have the baby so you can get arrangements squared away. In most cases (especially at childcare centers) space is limited and availability can change suddenly.

Questions to ask when choosing a childcare provider 

Talk to friends, neighbors and co-workers to see who they preferred (and which providers may not have worked out and why). Also, take the time to do a full-on interview with your provider in the place where they’ll be caring for your child. Ask about child-to-teacher ratios, safety procedures, payment terms and what all is included in the price. 

Childcare is a business relationship 

This may sound a little harsh, but remember, you are paying this person or company for a service they are providing, which ultimately means it’s a business transaction. So it’s crucial to find that balance between a business partnership of sorts and a friendly relationship you’ll want to develop. That way everyone (especially your child) has a positive experience day in and day out.

Why a childcare contract matters

A crucial part of this business relationship is the childcare contract or agreement.

A childcare contract, sometimes called a daycare contract or childcare agreement, is a legally binding document that outlines expectations between parents and childcare providers. Whether you’re working with a daycare center, in-home provider or nanny, having a written agreement helps you understand key details, like payment, schedules, discipline procedures and termination of services. 

You’ll definitely want to get the details of your arrangement and the type of services they’ll provide (and what is not provided) in writing. 

What should be included in a childcare contract? 

The good news is that most licensed or certified childcare providers should already have a contract at the ready for you to review. A childcare contract is a legally binding document, and here are some of the essential terms it should include:

  • Contact information: This should spell out who the agreement is between, the name of the child and specific emergency contacts approved for certain situations.
  • Payment/fees: This should detail, in very clear language, tuition amounts, payment schedules and accepted payment methods.
  • Additional fees/late fees: If you are late picking up your child (as opposed to the agreed-upon time listed in the agreement), are you charged an additional or late fee?
  • Holidays, vacations and absences: There are times when childcare centers may be closed for holidays, an in-home provider may be on vacation or your child is ill or absent and will not attend childcare. Do you still have to pay for childcare in these instances? A contract should clearly indicate what should take place and if you are still responsible for payment.
  • Discipline: You should have an open and respectful conversation with any prospective childcare provider about their discipline policies and the approach they take. Then get it in writing so your expectations are clear moving forward.
  • Termination: There should be language in the contract or agreement that stipulates how either the provider or parent/guardian can terminate the agreement.

Should you have a childcare agreement reviewed by an attorney?

Whether you’re handed a contract by your provider to complete or need to come up with an agreement on your own, it’s a good idea to have it reviewed by an attorney. Before signing a childcare contract, consider having it reviewed by an attorney, ARAG members may be able to access legal guidance to help review childcare agreements and answer questions, so you can move forward with confidence. 

Plan coverage may vary, be limited to a specific number of hours or not available. For matters that aren’t covered, members may be able to receive 25% off network attorney fees. To view your plan-specific coverage details, view your plan coverage at ARAGlegal.com/member/plan-details or contact ARAG Customer Care.