One note, you should not refer to them as "paid sick days" as that makes it an employee/employer relationship and then your clients technically have to pay CPP etc. You could instead word it as "4 paid closures" which may be used if you are sick or have an appointment. Personally, I wouldn't do the 75% pay for sick days, although I understand that you are trying to encourage them to keep sick kids home. If they are too sick to be in care, just call the parents and have them pick the child up immediately. If they disregard your policies, terminate them. Keep in mind that things like coughs can go on for months and do not mean the child can't be in daycare. However, fevers, vomiting, diahrea etc would constitute an immediate call to parents and 24 hours sympotom free before returning to daycare.