Part 2.1 Application to CWELCC system

Ontario Regulation 137/15 ss. 77.1

Intent

Section 77.1 sets out the rules for enrolment in the CWELCC system, including the reasons a service system manager is allowed to deny an applicant enrolment.

Clarifying guidance

Every licensee who wants to be part of the CWELCC system must apply for enrolment following the process set out by their local service system manager. Contact information for all 47 service system managers is included in this list of the service system managers. This process may be somewhat different across the province and licensees are encouraged to visit their service system manager’s website for more information.

After a service system manager receives a CWELCC application from a child care applicant or existing licensee, they review the application details and determine whether the program is eligible for enrolment in CWELCC. They may follow-up with the licensee for more information or to confirm specific program details.

There are three reasons for which a service system manager can deny enrolment in CWELCC (as specified in subsection 77.1(2) of the regulation):

  • the program is not financially viable or will not be financially viable
  • there is reason to believe that CWELCC funds would not be used properly
  • the child care program is not consistent with the service system manager’s targeted growth plan

If the service system manager decides to enroll a licensee’s program in CWELCC, they will work with the licensee to execute a service agreement. The licensee must comply with any terms and conditions in this agreement and keep a copy of the service agreement at the child care centre.

For more information on the rules related to funding and eligibility for CWELCC, see the Ministry of Education’s funding guidelines.

Cross-reference: the regulation has requirements around keeping records. See subsection 82(1).

Cross-reference: the regulation has requirements for communicating with parents and staff if a licensee is leaving the CWELCC system. See section 77.3 of the regulation.

Part 2.2 Eligibility for Canada-Wide Early Learning and Child Care System

Ontario Regulation 137/15 ss. 13.1 (1), (2), (3) and (4)

Intent

Section 13.1 requires all child care centre licence applicants to provide the ministry with information about their plans to enrol in the CWELCC system. If the applicant plans to enrol in the CWELCC system, this information must include advice from the local service system manager that indicates whether the proposed program would be eligible to receive CWELCC funding.

When submitting their application in CCLS, licence applicants will be required to state whether or not they intend to enrol in CWELCC.

If the applicant does not intend to enrol, the service system manager will receive a notification from CCLS that there is a new child care licence application that will not be applying for CWELCC. This satisfies the regulatory requirement in section 13.1 to provide the ministry with evidence that the SSM has been notified that the program does not intend to enol in CWELCC.

If the applicant intends to enrol, CCLS will send their application to the local service system manager who can provide the required “advice” directly in CCLS.

Part 2.3 Base Fees for CWELCC-enrolled licensees

Ontario Regulation 137/15 77.2

Intent

Section 77.2 sets out the rules that CWELCC-enrolled programs must follow when they are setting parent fees.

Clarifying guidance

This provision applies only to those licensees who are participating in the CWELCC system and their base fees.

Offence

It is an offence under the CCEYA to contravene or fail to comply with section 77.1 of the regulation. per paragraph 88.1(10) of the regulation.

A person convicted of an offence under the CCEYA is liable to a fine of not more than $250,000, imprisonment for a term of not more than one year or both (per section 79  of the Act) and is prohibited from providing child care or operating a child care premises in Ontario at any time in the future (per subparagraph 9(1)(1)(i) of the Act).

Administrative penalty

Contravention of section 77.2 of the CCEYA may lead to an administrative penalty of $750 × number of children for whom a fee above the cap was charged. See section 78 and item 21 of Table 1 under this section.

The amount of the administrative penalty increases if the contravention is repeated in the next three years or if the contravention has been going on for two or more days in a row.

An administrative penalty can be up to $100,000.

What is a base fee?

Base Fee: any fee charged for the provision of child care, including any fees for services or items required by O. Reg 137/15 and any other mandatory parent fees. Only base fees must be reduced under the CWELCC system.

Non-Base Fee: any fee charged for optional items or optional services (for example, transportation) or any fees charged where the parent fails to meet the terms of the agreement with the licensee (for example, late fees).

Examples of base and non-base fees are provided below.

Base Fees:

  • play materials, equipment and furnishings: cot, crib, bedding, play materials
  • supervision by adult during operational hours
  • development and implementation of individualized plans (medical, special needs, anaphylaxis)
  • registration fee, deposits, administration fees – any fees that are mandatory for a parent to pay in order to receive child care, even if the fee is received and processed by a third party (for example, a billing company)
  • food (where required by regulation for children under 44 months and where mandatory for parents)

Non-base Fees:

  • late pick up fees for child care provided beyond operational hours outlined in the parent handbook
  • bank processing fees (such as for non-sufficient funds)
  • field trips (if optional)
  • transportation (if optional)
  • diapers, sunscreen (if optional)

Fees for Child Care

Since March 2022, child care fees have been reduced gradually over time at programs that are enrolled in the CWELCC system.

The first step in fee reductions took place between April and December 2022 when licensees were required to reduce their fees by 25%.

On December 31, 2022, licensees were required to reduce fees by another 37%. These two calculations work out to a total reduction of 52.75%.

Base fees for eligible children in CWELCC enrolled child care programs must now be $22 per day or less.

On January 1, 2025, specific rules took effect for programs that were already enrolled in CWELCC:

  • CWELCC-enrolled programs charging more than $22 per day for eligible children must reduce fees to $22 per day
  • CWELCC-enrolled programs charging $22 per day or less for eligible children must maintain their fees as of December 31, 2024
  • New programs enrolling in CWELCC must set their base fees using the amount set out in tables in the regulation.

CWELCC-enrolled licensees must consider all mandatory fees charged to parents/guardians when calculating their overall base fee. This includes all costs parents/guardians are required to pay, such as registration fees and any other one-time or recurring fees. This information is critical in determining whether they are compliant with the cap of $22 per day.

Licensees can charge a one-time fee, like a registration fee, as well as charging a daily fee for child care. The total cost of the one-time fee plus the daily fees should average $22 or less per day over a year.

To figure out how much the one-time fee adds to the daily fee, licensees must divide the one-time fee by the number of days they provide service in a year.

Important information: For the purpose of spreading out the one-time fee, a year starts on the day the one-time fee is charged.

For example, if a child care program charges a $500 registration fee and has 250 service days in a year:

  • They divide $500 by 250 days, which equals $2 per day.
  • This means the $500 fee adds $2 to the daily fee of child care
  • So, the daily fee for parents can only be $20 to stay under the $22 per day limit.

New child care centres can use the number of service days in a typical year to do this calculation.Licensees who are not enrolled in CWELCC may continue to set their own parent fees.

Refunding or crediting prepaid “overpayments”

Where necessary, licensees must ensure parents are refunded for any overpayments. An overpayment is the difference between the “old” base fee and the “new” base fee being charged to parents. They may occur in situations where a parent pre-pays child care fees in advance. For example, some parents pay an annual tuition fee.

Licensees who enrolled in CWELCC before January 1, 2025, must provide refunds for overpayments to parents by March 2, 2025, which is 60 calendar days after the effective day for the rules for new fees.

New licensees who enrol in the CWELCC system in 2025 must provide a refund/credit within 60 days of being notified by a local service system manager that they have successfully enrolled.

Helpful tip: To help licensees to understand the new cost-based funding approach which is effective as of January 1, 2025, the ministry has created online webinars that provide a high-level walk-through of the new approach through representative case examples.

For more information about the new funding approach and how it impacts your centre, please speak to your local service system manager.

Cross-reference: the regulation has requirements around keeping records. See subsection 82(1).

Compliance Indicators

  • The licensee verbally confirms that parents of eligible children are not charged a base fee higher than set out under 77.2(2)(1-3) or ss. 77.2(3) provided below: 
    The base fee is the lowest of the following amounts:
    • $22 per day.
    • The base fee charged on December 31, 2024, if the licensee was enrolled in the Canada-Wide Early Learning and Child Care System on that day.
    • The applicable amount set out in a Table to this section, if the licensee was not enrolled in the Canada-Wide Early Learning and Child Care System on December 31, 2024.
  • A base fee that is different from the base fee determined in accordance with subsection (2) may be charged in respect of an eligible child if the Minister has authorized the local service system to enter into an agreement with the licensee to permit the different base fee.
  • The licensee verbally confirms or provides written confirmation that confirms that any credit or refund required under subsection (4) was given within 60 days after
    • December 31, 2024, if the licensee was enrolled on that day 
      And
    • the day the licensee is notified by a local service system manager of the enrolment date, if the licensee was not enrolled on December 31, 2024.
  • There is written evidence or the licensee verbally confirms that all children who had a credit with the licensee and ceased receiving child care at home child care premises were refunded any remaining amount within 60 days after the day the child ceased receiving care.

Part 2.4   Notice of Disenrollment

Ontario Regulation 137/15 77.3

Intent

Section 77.3 sets out the rules that licensed child care programs must follow if they leave the CWELCC system.

Clarifying guidance

These requirements only apply to those licensees who are enrolled in the CWELCC system.

Licensees who voluntarily choose to leave, or disenroll, from the CWELCC system must tell the following people at least 30 days before their last day as a CWELCC enrolled program:

  • Parents of all eligible children enrolled in the program
  • All employees

The same rules apply for programs that are told they are being disenrolled from the CWELCC System by their service system manager unless they are not given a full 30 days notice by their service system manager.

If a program is told they are being disenrolled less than 30 days before the disenrollment date, they must notify parents within 3 business days of receiving this information.

Families who are notified that their program is disenrolling from the CWELCC system must be allowed to withdraw their child without being penalized. To do so, families must provide notice of withdrawal to the licensee within 30 days of receiving the notice of disenrollment notice and provide at least 30 days notice before their child’s last day in the program.

Important information: all of the rules related to parent fees continue to apply until a program has officially left the CWELCC system. This means that licensees cannot raise parent fees during the 30 days after they have told families they are leaving the CWELCC system.

Cross-reference: the regulation sets out the fee rules that CWELCC-enrolled programs must follow. These rules still apply to licensees enrolled in CWELCC until the program officially leave the program. See section 77.2 of the regulation.

Important information: the references to a number of days mean calendar days, unless otherwise stated (that is, three business days). For example, 30 days means 30 calendar days.

Example

The following is a sample timeline to illustrate these requirements.

Licensee of ABC Child Care Centre has decided to disenroll from the CWELCC system effective March 1, 2025.

On January 20, 2025, the licensee notifies families and employees that they are leaving the CWELCC system and parent fees will increase on March 1, 2025.

On January 22, 2025, a child’s parents contact the licensee and gives a notice of withdrawal, stating that their child’s last day in care will be February 28, 2025.

The child withdraws from the program without any penalty.

Cross-reference: The regulation has requirements around keeping records. See subsection 82(1).

Cross-reference: The regulation has requirements around having a parent handbook and what types of information must be included in the handbook (at a minimum). A licensee’s parent handbook must include information about the base fee and any non-base fees that may be charged, and whether or not the licensee is enrolled in CWELCC. See subclause (a)(iii) of subsection 45(1) of the regulation.

Compliance Indicators

  • Where a licensee intends to disenroll from CWELCC, there is written confirmation that the licensee provided a notice of the disenrollment at lease 30 days before the disenrollment date to the following individuals:
    • A parent of every eligible child enrolled at a child care centre.
    • Every employee of a child care centre.
  • Where a licensee has been advised by the service system manager that they will be disenrolled from CWELCC, there is written confirmation that the licensee provided a notice of the disenrollment to the parent of every eligible child enrolled at the chld care centre, every employee of the child care centre and the notice was provided:
    • within three (3) business days after the day the licensee received the notice from the service system manager if the advice was given less than 30 days before the disenrollment date 
      Or
    • at least 30 days before the disenrollment date indicated by the service system manager if more than 30 days was provided
  • There is written evidence or the licensee provides verbal confirmation that the licensee did not penalize any eligible parent that gave 30 days notice of withdrawal (less if withdrawal policy allows) within the 30 days of the licensee advising of disenrollment in the Canada-wide Early Learning and Child Care System.