Parenting & Family

Daycare refunds related to COVID cancellations?

  • Last Updated:
  • Apr 6th, 2020 1:59 pm
[OP]
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Feb 11, 2007
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Oakville

Daycare refunds related to COVID cancellations?

Just curious what your toddler daycare has said about refunds for covid related cancellations?
Same goes for after school care for elementary school kids.

Here's what our daycare said.
Some families have inquired about our fee policy due to the COVID-19 situation. According to our policy “If, for any reason, the daycare should have to close during the day or is unable to open due to unforeseen circumstances, regular fees will still apply”. (Parent Handbook, page 16)
We understand how challenging this situation might be and to support our families in this uncertain time, we will offer a 1-week tuition discount. The payments for the period March 16’20 – March 27’20 will be processed as scheduled on Monday, March 16’20. There will be no payments processed on Monday, March 30’20 as the week of March 30’20 is being discounted. The next payment for 1-week only will be scheduled upon return to school on April 6’20.


That's not too bad, but if it goes on for longer we won't have a choice but to cancel the care and stop paying for nothing. They probably won't let us back in when this is done, so we'd have to find new care.

I haven't heard back from our older kid's after school care, but it might be the same policy.
96 replies
Deal Expert
Aug 2, 2001
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I would hope that they are then paying all their staff.
Newbie
Mar 5, 2018
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Edmonton
TrevorK wrote: I would hope that they are then paying all their staff.
LOL good one.

OP I think what you've written is pretty standard. You could leave the daycare for short term gain, but you're right, you'll likely need to find a new one once this is over.
Deal Addict
Dec 31, 2007
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Richmond Hill
Maybe some places are salaried instead of hourly.
[OP]
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Feb 11, 2007
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TrevorK wrote: I would hope that they are then paying all their staff.
I wouldn't be so sure of that. I think a lot of them are hourly and may go onto EI. Sure they still have fixed expenses, but who should bare the burden? The business? Or the people? If the gov't is going to help, it's probably easier to fund thousands of small businesses than millions of people.
Jr. Member
Sep 26, 2008
171 posts
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Longueuil
Ours is non subsidized and said they will look into if any refund or rebate will be offered by the governing director but for now will have to still pay. I feel if the daycares are government mandatory closed then the government should pay the daycare not the parents who now also have to take at least 2 weeks off work unpaid.
[OP]
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avnebbie wrote: Ours is non subsidized and said they will look into if any refund or rebate will be offered by the governing director but for now will have to still pay. I feel if the daycares are government mandatory closed then the government should pay the daycare not the parents who now also have to take at least 2 weeks off work unpaid.
yea, gov't should give them at least EI pay, then they wouldn't charge parents.
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Jul 5, 2004
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My home daycare doesn't charge if they are closed.
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engineered wrote: I wouldn't be so sure of that. I think a lot of them are hourly and may go onto EI. Sure they still have fixed expenses, but who should bare the burden? The business? Or the people? If the gov't is going to help, it's probably easier to fund thousands of small businesses than millions of people.
This is sort of a moral dilemma I think - who should bare the burden?

If the business is charging parents the full fees they are not shouldering any of the burden. If they are reducing their payroll in any amount, then they are actually profiting from this. And, even if the daycare is paying their employees they still have a significant reduction in other costs (such as food, utilities, etc.) that result in an additional profit.

A business exists for profit. The expectation is that there is some degree of risk involved with this endeavour. While a wise financial move to make more profit during this time than otherwise, I think because they are shouldering none of the burden (even if they made the same profit) it is morally wrong.


To me a fair solution to spread out the burden is the staff collect EI, the business collects a significantly reduced fee (taking wages out of the equation) that relates to bare costs of the property, and the parents are forced to provide care for their child(ren). We cannot forget that the parent likely makes more per hour than they pay in child care, so having to take their vacation time or unpaid leave actually puts them in a significantly worse financial position.
Sr. Member
Jan 26, 2017
774 posts
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we are at a non-profilt daycare, downtown Toronto. NO REFUNDS. On the hook for about $1K for the 3 weeks.
Pissed off and don't know what to do.
[OP]
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Bebo123 wrote: we are at a non-profilt daycare, downtown Toronto. NO REFUNDS. On the hook for about $1K for the 3 weeks.
Pissed off and don't know what to do.
If this goes on longer and they don't stop payments, I will definitely cancel.
Deal Guru
Feb 24, 2007
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Are reputable and good quality daycare places not hard to find? For me it has been a long time using a daycare since all my kids are at least 21 yo but what I remember finding a good quality daycare with reasonable cost is not too easy to find.
[OP]
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eldiablo wrote: Are reputable and good quality daycare places not hard to find? For me it has been a long time using a daycare since all my kids are at least 21 yo but what I remember finding a good quality daycare with reasonable cost is not too easy to find.
Yes, they are, plus the disruption for the kids. If it wasn't for that I'd have cancelled already.
Sr. Member
Jan 12, 2017
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I think a week discount is pretty good. Most daycares are on fixed billing, doesn't matter how many stat holidays there are, or whether you take a week off.

Comping daycares at least partially to flow back to parents should be one of the federal funding items as part of the broader action.
engineered wrote: Just curious what your toddler daycare has said about refunds for covid related cancellations?
Same goes for after school care for elementary school kids.

Here's what our daycare said.
Some families have inquired about our fee policy due to the COVID-19 situation. According to our policy “If, for any reason, the daycare should have to close during the day or is unable to open due to unforeseen circumstances, regular fees will still apply”. (Parent Handbook, page 16)
We understand how challenging this situation might be and to support our families in this uncertain time, we will offer a 1-week tuition discount. The payments for the period March 16’20 – March 27’20 will be processed as scheduled on Monday, March 16’20. There will be no payments processed on Monday, March 30’20 as the week of March 30’20 is being discounted. The next payment for 1-week only will be scheduled upon return to school on April 6’20.


That's not too bad, but if it goes on for longer we won't have a choice but to cancel the care and stop paying for nothing. They probably won't let us back in when this is done, so we'd have to find new care.

I haven't heard back from our older kid's after school care, but it might be the same policy.
[OP]
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Feb 11, 2007
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Oakville
Chickennbeans wrote: I think a week discount is pretty good. Most daycares are on fixed billing, doesn't matter how many stat holidays there are, or whether you take a week off.

Comping daycares at least partially to flow back to parents should be one of the federal funding items as part of the broader action.
A business can count it as a loss against profits, and they're probably going to get some bailouts from the gov't.
For parents it's lost post-tax money for nothing, then they have to pay someone else to watch their kids, or sit at home with them earning nothing.

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