I agree with the others, be honest without gossiping. I have 4-5 families at a time and they all know each other through dc and a few know each other outside of dc. I always talk to the kids during the last 2 weeks about how so and so is leaving and we take time to say goodbye to each other and have a little party on the child's last day.
Most of my children have left to go to preschool or a centre. A few have left because parents have lost jobs and I'm pretty sure one family left because they were just waiting until a friend of the family opened up her own daycare and were "using" me for the time being. Last summer I had 3 leave and I felt like that looked bad!! I was honest with the parent who was still here and with new parents as to why these spots were opening. I just had 1 leave the end of January and have one leaving tomorrow (preschool and parent lost job) and the mom who has been here the longest said "well, we aren't leaving anytime soon!" so that made me feel better lol.
I take it a bit personally when families leave (even though my head tells me not too and I do fully realize that many, many families will come and go over the years) but I feel like it it looks bad when it happens but I have never had anyone leave on bad terms so logically I know this is irrational.
If a child was leaving due to termination on my part or because the parents weren't happy with the care I provided, I would likely just say something like " xxx is leaving because it just wasn't the right fit here. We will miss xxx but are looking forward to our new friend"

































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