I agree w/ other posters...be very specific, but also, do not be afraid to use your policies to back up what you expect!! That's the whole point and I will tell you, parents will try to "bend" the rules if you do not speak up. Also, your "contract" is not your "policies". They are two seperate items. And if you really want to get legal, parents technically have to sign each page of your policies and you have to keep a copy on file (this is what I have been told by the agency that oversees daycare in our area.) I honestly do not know anyone that goes to that length though.
I have a book of policies regarding days off, sick time, pay, etc. and I then have a separate contract they have to sign, I have to sign and I keep on file. If there ever is an issue, I can use my policy manual as my back up...they signed a contract stating that they read and understood policies, there should be no dispute! (You will also learn over time, that you may want to amend them for certain situations.) I used many different manuals to compile my own 7 yrs ago, and have not changed much since then (except maybe fees or hours.) Best of luck...if you have any other questions, please let me know...I usually teach a "start your own daycare" class in the fall w/ the YWCA and have done this for 7 yrs. I have also taken all the CDA classes. I would be happy to help if I can!