I personally would find it easier to terminate after this. First of all, where was the meds explanation when they were telling you it was ALL YOUR FAULT and the kid never acts this way with them? Where was the meds explanation when the Dad said, "No, it's you, the baby is fine with the grandparents". Now that tack is not working for them anymore, so they are going the sympathy route. This kid could seriously hurt your business. He could seriously hurt you or the other children. He could hurt your reputation and cost you clients. Just say "I'm sorry for all the trouble you are going through. However, I have given more than enough time to try and work things out and XX and YY are just not good fits here. In a group care situation I have to think of the well-being of all the children and therefore your termination is effective this date."
If you feel generous, give them the two weeks. I personally would not give them two weeks. First of all, that is two weeks that the kid could hurt someone and then you have more parents involved and it hurts your business. Second, due to the accusatory nature of both parents, I wouldn't put it past them to get even nastier during the notice and try to ruin things for you. I would just take the loss, emphasize that his behavior is SUCH A RISK that he cannot be welcomed back and be done with them today.
Just my two cents.

































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