I've never really termed anyone, they just usually leave (mat leave, other daycare spot opens, etc) or pull.

BUT, I wouldn't give a good-bye party, the kids will get over it. Yes, you and the dck will miss that child, but the family HAS to go. Just explain to the kids that they had to go to a different place - that's all they need to know.

Give the parents a termination letter in an envelope at drop-off, and at the end of the day (at pick-up) have all the kids stuff at hand (just in case).

My 2cents!