A Canadian Daycare Service Contract is a legally binding agreement between a child care provider (daycare centre, family daycare, or home-based provider) and the parent or legal guardian of a child being enrolled in care. It establishes the terms of the child care arrangement including hours of operation, fees, pickup and drop-off procedures, health and safety policies, discipline guidelines, emergency protocols, and termination conditions.

Child care in Canada is regulated at the provincial and territorial level. Ontario's Child Care and Early Years Act, 2014 (CCEYA), S.O. 2014, c. 11, Sched. 1, requires licensed providers to enter into written agreements with parents and to give at least 30 days' notice before making changes to those agreements. British Columbia's Community Care and Assisted Living Act, S.B.C. 2002, c. 75, combined with the Child Care Licensing Regulation, B.C. Reg. 332/2007, establishes licensing standards for group child care, family child care, and in-home multi-age care. Alberta's Child Care Licensing Act, S.A. 2007, c. C-10.5, along with the Early Learning and Child Care Act, sets out requirements for facility licensing, staff qualifications, and child-to-staff ratios.

The Canada-Wide Early Learning and Child Care (CWELCC) system, established through bilateral agreements between the federal government and each province and territory under the Canada Early Learning and Child Care Act, S.C. 2024, c. 17, has transformed the child care landscape by introducing regulated fee reductions (targeting an average of $10 per day) and creating new standards for accessibility and quality. Providers participating in the CWELCC system must comply with additional reporting and fee requirements that should be reflected in the contract.

A Canadian Daycare Service Contract is needed whenever a parent or guardian enrolls a child in a licensed or unlicensed child care program, whether at a daycare centre, family daycare home, or through an in-home provider. Provincial licensing regulations in most jurisdictions require licensed providers to maintain written agreements with families as a condition of their licence. In Ontario, the CCEYA specifically mandates that a copy of the agreement be kept at the child care centre or agency head office and be available to provincial program advisors upon inspection.

This contract is essential when hiring an individual nanny or in-home child care provider in Canada. The CRA applies a specific test to determine whether the provider is an employee or independent contractor -- if the parent controls how, when, and where the work is done, the provider is likely an employee subject to payroll deductions for CPP, EI, and income tax. The contract must clearly define the working relationship to avoid misclassification, which can result in back taxes, penalties, and interest.

A daycare service contract is needed when a child has special medical needs, allergies, or dietary restrictions that require individualized care instructions. Provincial human rights legislation, including the Canadian Human Rights Act (R.S.C., 1985, c. H-6) and provincial equivalents, requires child care providers to make reasonable accommodations for children with disabilities unless doing so would cause undue hardship.

The contract is also necessary when parents share custody and both need to be identified on the agreement, with clear authorization regarding pickup rights, emergency contacts, and communication protocols. This protects the provider against unauthorized removal disputes and ensures compliance with any existing custody or access orders.

Child and parent information must include the child's full legal name, date of birth, provincial health insurance number (OHIP, MSP, AHCIP, RAMQ, or territorial equivalent), and any known medical conditions, allergies, or dietary restrictions. Both parents' or guardians' names, contact information, and custody status should be documented. If a custody order restricts one parent's access, the provider must have a copy on file.

Hours of operation and schedule define the days and times care is provided, early drop-off and late pickup policies, and any additional fees for extended hours. Late pickup fees are standard and should specify the grace period and rate per increment. The schedule should distinguish between full-time, part-time, and before-and-after-school care arrangements.

Fee structure must specify the rate in Canadian dollars, payment frequency, accepted payment methods, late payment penalties, and whether fees are payable during statutory holidays, sick days, and vacation periods. If the provider participates in the CWELCC $10-a-day program, the contract should reflect the subsidized rate and any parent co-payment obligations. Include provisions for fee increases with the required 30 days' notice.

Emergency medical authorization grants the provider permission to seek emergency medical treatment if a parent cannot be reached. Provincial health insurance coverage must be current. Include the child's physician name, preferred hospital, and a detailed list of authorized emergency contacts with their relationship to the child.

Discipline and behaviour management policies must comply with provincial licensing regulations, which universally prohibit corporal punishment, verbal abuse, and emotional deprivation. Medication administration requires written parental authorization specifying the medication name, dosage, frequency, and physician instructions. Both parties must sign, and the governing law should reference the applicable Canadian province.