Maybe I misunderstood but this seems pretty straight forwardto me.....you give two weeks vacation without pay to your families, correct? Well it's as simple as that. Once they have gone over the two weeks then they need to pay for any additional time off UNLESS you are closed. If she does not pay you beyond the two weeks then I'm assuming she doesn't pay you in advance because if she left you with post dated cheques she would be unable to do this. This is why it is so important to be paid in advance of care given, not with them paying you in arrears or there is a high chance of being screwed and you leave it wide open for issues like this to come up. Did you take a two week deposit or similar upon enrolment? This would cover any discrepancies when she short changes you by not paying after the two weeks, and then you don't accept their kids into care until they are up to date with their payments to you. I have a strict policy that a child will not be allowed into daycare if payment is not up to date and in addition there is a late payment fee charged daily until they make their account with me current. This is a huge deterrent which prevents this from being an issue ever.

I would give them this information in writing in the parents hand and have a frank conversation acknowledging how there seems to be some misunderstanding of the policy on paid and unpaid days. Clarify it and discuss it verbally and then have it all in the letter too. I hazard a guess that if you don't bring it up with her to her face, that she will continue to try and pull one over on you because she is getting away with it. You need to confront this problem ASAP and take back control of your business immediately.