I would have terminated for the rude and disrespectful behaviour right away. I just had to do that with one family and honestly it was awful to do because the little boy is the absolute sweetest and most well behaved boy I have ever had in care!

As for holding them a spot or keeping their child. That would be up to you. I can tell you from my own experience that I would never do it again. I held a spot with the little one only attending 2 days a week during mom's mat leave as I was promised both children 3 days a week. Well, needless to say once they realized the cost of 2 spaces they pulled both kids 2 weeks after starting them and a couple days before Xmas! I was lucky that they paid a month's wages in lieu of notice, but still not easy to replace 2 kids at that time of year so unexpectedly!