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I agree with your opinion. She did not hold a spot for a long time, she could contact other family that she refused (IF that was the situation!). Definitely the daycare provider she should be more...

As a daycare owner: I would be very careful here! Tell him nicely that this is against the licensing regulations.
As a parent: I would not like it either.

I have option for "daily rate" payment.Parents would count number of days of each month and write the cheque accordingly. If the child attends full month, the fee comes to more $$. But they don't...