What does your contract say???? Mine says....

A deposit of the last 2 weeks of pay will be required upon signing of this contract to hold the child’s spot in daycare. If the parents wish not to follow through on the spot, the deposit is non-refundable. If the caregiver wishes to no longer hold the spot, the deposit will be returned in full to the parents.

So if I was in your case their deposit would not be returned as they no longer wished to use the spot.

But it all comes down to what ur contract says!