Daycare Termination Letters for Providers - Templates & How To

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While daycare centers are an essential service for parents and a great place for children and caregivers to interact, there may be certain reasons why a daycare termination letter from providers is warranted. Daycare termination letters for nonpayment or behavior are necessary tools for daycare centers to create the best possible environment for all the children at the center and good relationships between daycare workers and parents. 

Daycare is one of the most important services in the U.S. for busy parents. An estimated 6.38 million working parents, around 58%, depend on daycare services throughout the country. Parents need a place for their children to go for care and supervision while they work during the day. 

Daycares also provide much-needed socialization, enrichment and development for young children —  11 million working parents across the U.S. have children under the age of 3.  

But if a situation within the dynamics of the daycare center warrants it, it can be in the daycare center's best interest to terminate their relationship with a client. 


Top Reasons for Terminating a Daycare Client 

Terminating a daycare client from your center may seem harsh. But if it isn't working out between you and a parent and their child, it may be a necessity to terminate the relationship. There are many reasons why a daycare center might need to terminate a client from their daycare service, which we will explore here.  

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Late Tuition Payments 

Daycares may try to create a warm and loving family-type environment for the children in their care, but they are first and foremost businesses. A daycare center relies on monthly tuition payments to pay its bills. This includes supplies and paying daycare center workers.  

The average cost for childcare in 2020 was $10,174 per year. This increase in tuition is due to factors like inflation and the availability of licensed daycare centers and skilled daycare workers in a given area. 

Occasionally, circumstances can arise with families where they may be behind on a payment, but a family that makes a habit of consistently late or skipped payments isn't playing by the rules. Not only that, it hurts your ability to keep up with expenses and remain open. 

You can't keep bending the rules and playing nice with everyone if they're abusing the privilege. This type of situation requires a daycare termination letter for nonpayment. 

Child Behavioral Issues 

Another top reason for daycare termination letters from providers is bad behavior. Because daycares are communal spaces, there are large groups of children in a shared space. This can create issues between children in the center in terms of socialization and cooperation. 

Sometimes a child is just not a good fit for a particular daycare center. Frequent outbursts or destructive behaviors like hitting and biting are dangerous to the other children and should not be tolerated. Other issues like yelling and throwing toys or failure to follow the rules can create a poor environment for the other children.  

If you have given numerous warnings and made the parents aware of their child's behavior with little to no change over time, you should issue a daycare termination letter for behavior. 

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Improper Parent Behavior 

Creating a safe environment for the children in your daycare is your first priority. You should also ensure you have a safe workplace for your daycare workers. Daycare worker turnover rates are skyrocketing, with an average turnover rate of 26%-40% in licensed daycare facilities. 

If a parent repeatedly and unjustly engages in abusive behavior toward daycare center workers, it creates a toxic workplace environment. It's already hard enough finding qualified daycare center workers and contending with the aftereffects of the COVID-19 pandemic. You don't want to lose your staff because of an unreasonable and bullying parent. 

This also goes for difficult parents who may be bullying or fighting with other parents or their children. As a business, you have every right to terminate a parent who engages in unprofessional conduct. You should issue a daycare termination letter for improper parent behavior.  

Engaging in Poor Hygiene Practices 

Daycare termination letters from providers protect your center's overall well-being. A parent who constantly brings their sick child to daycare regardless of sick child policies poses a danger to the children and staff of the center. 

As evidenced by the COVID-19 pandemic, viruses and other illnesses can quickly spread in close and shared quarters. Proper health protocols must be followed at all times to maintain health and safety. 

Children who are not properly potty trained by a certain age also create health and safety issues. They may wet or soil themselves throughout the day. Bacteria from fecal matter on shared surfaces can expose other children to serious illnesses as well. 

A child who has been exposed to lice can cause the infestation to spread to other children in the center and even force you to close down. Active cases of chickenpox or mumps can also spread quickly around the center. If a child in your daycare is a threat to your center's health and safety, you will need to terminate your relationship with the parent and child immediately. 

Inability to Meet Child's Needs 

While most issues for termination are for behavioral issues, poor hygiene or nonpayment, sometimes a daycare may have a child they can't properly care for. This may be because the child has developmental delays that put them too far behind their peers. 

Daycare centers need children who are roughly in the same developmental groups. This helps group activities and lessons flow at the proper pace. Although it's not the child's fault, a daycare center may not be able to give the child the care and attention they need, so they will need to go to another facility that is better suited to their needs.  

Other Issues 

Other issues may arise at your center that could require daycare termination letters from providers, including: 

  • Frequent late pick-ups of a child 
  • Lack of proper supplies for a child 
  • Badmouthing your business 

It’s up to you to decide on a case-by-case basis if these issues warrant the use of daycare termination letters, but this is an important step, especially if they violate your daycare center's Code of Conduct or contract.  



Know Your Termination Rights and Procedures 

You are well within your legal rights as a business to terminate service, especially if a parent or child is a threat to your center. You must provide written notice of termination to the parent stating the reasons for termination. You must also give two weeks' notice when you cancel a contract for daycare services. 

Be certain you have documentation of each occurrence of the issue. Keep your documentation clear and concise as to why this is a violation of daycare policies against a signed contract. Give the termination notice directly to the parent and remain firm if they start to yell or cry. Don't waffle or fold under pressure. 

Contact your local licenser to inform them of the family you terminated in case they try to discredit your center through a smear campaign. Explain the process you took and the reasons why you terminated services in your records. It is in your best interests to protect yourself from any potential backlash. 



Sample Templates for Daycare Termination Letters for Providers 

If you're looking for sample templates for effective termination letters, review the examples below. There are different examples for each situation. 

Daycare Termination Letter 1 Nonpayment

Daycare Termination Letter for Nonpayment #1 


Dear [Name of Parent], 

This letter is to inform you of the termination of daycare services for your child, [Name of Child], due to nonpayment. You have repeatedly missed your monthly daycare payments, which is a violation of the contract you signed. While we understand everyone faces difficulties, we are still a business. 

As a result, [Name of Daycare] will no longer be able to provide daycare services for [Name of Child]. Effective two weeks from the receipt of this letter on [Date], your child is no longer in our care. 

Your remaining balance of $[Amount Owed] is still due to be paid in full at your contract's end. Failure to do so will result in further legal action to recoup back payments. 

We have enjoyed having [Name of Child] and hate to see them go, but we can no longer overlook this issue. 

Kind regards, 

[Name of Center Operator] 

Daycare Termination Letter 2 Nonpayment


To [Name of Parent], 

This letter serves as your two-week notice for the termination of daycare services for [Name of Child] at [Name of Daycare], effective immediately. Your account with our organization has been in bad standing for quite some time with no attempt to remedy the situation. 

All parents must pay the balance due on their accounts at the beginning of each month for services rendered as stated in our contract. Because you have made no attempt to correct this, we must terminate your daycare services on [Date of Termination].  

You still owe us a balance of $[Amount Owed], which must be received by the end of the day on your last day at our center or we will be forced to take further action to collect it. [Name of Child] will be missed, but we cannot continue to ignore this issue. 


[Name of Center Operator] 

Daycare Termination Letter 1 Behavior



To the parent(s) of [Name of Child], 

This letter is to inform you of the termination of daycare services at [Name of Daycare]. We have had multiple instances of [Name of Child]'s behavior becoming an issue at our center. We have spoken to you on multiple occasions regarding this behavior with no improvement.  

[Name of Child]'s behavior is affecting the welfare of the children and staff at our center and we feel it is in the best interests of everyone at [Name of Daycare] that you seek daycare options for your child elsewhere. 

We are a community and everyone must follow the rules outlined in the Code of Conduct and contract you signed at the start of your child's time with us. Your services terminate two weeks from the date of this letter, on [Date of Termination]. 

We hope you have better success at another center.  


[Name of Center Operator] 

Daycare Termination Letter for Behavior #2 Daycare Termination Letter 2 Behavior



Dear [Mr./Mrs./Ms.] [Name of Parent],  

Your child [Name of Child] has been at [Name of Daycare] since [Date of First Visit] and while they are a bright and creative child, their behavior has become increasingly difficult to manage. 

Several times a day, [Name of Child] [describe behavior], which is not tolerated. They have also [describe behavior] despite being told not to multiple times. When put into time-out, [Name of Child] yells and disrupts the other children and refuses to sit still. 

These behaviors are cause for concern among daycare workers who are taking time away from the other children in an attempt to address [Name of Child]'s frequent outbursts. We do not feel well enough equipped to handle the needs of a child like [Name of Child] and are terminating daycare services on [Date of Termination]. 

We wish you luck in finding a new daycare center. 


[Name of Center Operator] 

General Daycare Termination Letter for Improper Behavior #1 

Daycare Termination Letter 3 Parent Behavior


Dear [Name of Parent],  

It has come to our attention that you have been unnecessarily rude to the staff members at [Name of Daycare] on multiple occasions. Our staff works very hard to provide care and enrichment for all of the children at our center. We do not appreciate your rude comments and aggressive behavior toward our staff. 

We have also received several complaints that you have been rude to other parents on our campus. We strive to create a welcoming and friendly environment that you have chosen not to participate in. 

We do not tolerate bullying in any form with our children or our parents, as outlined in the Code of Conduct you signed with your contract. As a result, your child's daycare contract will terminate on [Date of Termination]. 


[Name of Center Operator] 

General Daycare Termination Letters for Refusing to Follow Health Protocols #2 

Daycare Termination Letter - Medical Noncompliance


To the Parent(s) of [Name of Child], 

Your child has been brought to [Name of Daycare] sick on multiple occasions. While we understand your need to work, we have health and safety protocols in place for a reason to protect the other children and staff members at our center. 

Because you and your child refuse to participate in the hygiene rules detailed in our Code of Conduct, we have made the difficult decision to terminate your child's daycare contract effective on [Date of Termination]. 

We value the health and safety of the children and daycare workers at [Name of Daycare] and want the best experience for everyone. A sick child's illness can spread quickly to others in a shared communal space and create a health crisis that will require us to close the center. It is in everyone's best interest that you seek alternative daycare options for [Name of Child] elsewhere. 


[Name of Center Operator] 

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