Nursery Contract Guide

Nursery Contract Guide

A nursery contract is the agreement between the childcare provider and the parent or carer. It should explain the place being offered, the days and hours booked, fees, payment dates, notice periods, absence charges and the responsibilities of both sides.

Although nurseries may use different wording, the important terms should be clear, easy to find and consistent with any fee schedule or parent handbook you receive.

Nursery Contract Checklist

• Child’s agreed start date, days and session times.
• Regular fee and payment frequency.
• Registration fees, deposits and refund conditions.
• Notice period for leaving or changing days.
• Holiday, sickness and non-attendance charges.
• Bank holiday and nursery closure rules.
• Late payment and late collection fees.
• Fee increase and contract variation clauses.
• Funded childcare sessions and additional charges.
• Meals, nappies, consumables, trips and activities.
• Settling-in sessions and their cost.
• Termination, suspension and exclusion terms.

Nursery Fees And Payment Terms

The agreement should state the regular fee, when invoices are issued and whether fees are paid weekly, monthly or in advance. Check whether a “day” has fixed hours and whether early drop-off or late collection creates extra charges.

Look for automatic payment methods, late-payment charges and what happens if a direct debit fails. Ask whether monthly fees are equal instalments of an annual total or based on actual attendance each month.

Registration Fees And Deposits

A registration fee may cover administration and may be non-refundable. A deposit may reserve the place and may later be returned, credited against fees or withheld under stated conditions.

The contract should explain the exact amount, when it is payable and what happens if you or the nursery cancels before the start date.

Notice Periods

Many nurseries require several weeks’ written notice before a place can end or booked days can be reduced. Fees may remain payable throughout the notice period even if the child stops attending.

Check whether notice must end on a specific date, whether email is accepted and whether the nursery can use a different notice period from the parent.

Holiday, Sickness And Absence Charges

Nurseries commonly charge when a child is absent because the place remains reserved and staffing and building costs continue. The contract should explain family holidays, illness, emergency absence and any annual holiday allowance.

Read our guide on paying nursery fees during holidays for a more detailed comparison.

Nursery Closure And Bank Holiday Terms

Check whether fees continue when the nursery closes for bank holidays, staff training, planned annual closure, bad weather, building problems or emergencies. Different closure types may be treated differently.

Fee Increase Clauses

A contract may allow the nursery to increase fees, but it should explain how parents will be notified. Look for a clear notice period and whether you can end the contract before the increase takes effect.

Funded Childcare Clauses

Funded childcare should be explained separately from paid extras. The contract or funding agreement should state which sessions are available, whether hours are term-time or stretched, and what charges apply for meals, consumables or additional hours.

Ask whether the nursery requires a separate funded-hours form and whether your booking can continue if eligibility changes.

Late Collection And Additional Charges

Late collection fees may be charged by the minute or in blocks of time. Check how quickly the charge starts, whether repeated lateness can end the place and who the nursery contacts in an emergency.

Changing Nursery Days Or Hours

The contract should explain how to request a change and whether the nursery can refuse if the preferred days are full. Reducing days may require the same notice period as leaving.

When The Nursery Can End The Contract

Review circumstances in which the provider may suspend or terminate the place, including unpaid fees, serious policy breaches, repeated late collection or inability to meet the child’s needs. The process and notice should be stated clearly.

What If A Nursery Contract Seems Unfair?

Ask the provider to explain the clause and provide the current policy in writing. Keep records of emails, invoices and signed documents. Use the nursery’s complaints process if the issue is not resolved.

For general consumer guidance, see Citizens Advice consumer information and the UK Government’s consumer protection guidance.

Questions To Ask Before Signing

1. What is the total expected monthly cost?
2. Which charges are compulsory?
3. Is the deposit refundable and when?
4. How much notice must I give?
5. Do I pay during holidays, sickness and closures?
6. How often can fees increase?
7. How are funded hours delivered?
8. Can I reduce or swap days later?
9. What happens if my child does not settle?
10. What happens if the nursery cancels the place?