A Cancellation Policy explains who may cancel appointments and the terms and conditions under which they can do so. It clearly sets out the expectations of businesses and clients in the event of a ‘no show’, and enables you to charge cancellation fees to cover lost expenses. This policy contains the process of cancellation, reasonable notice requirements, and cancellation fees. This document is structured to suit direct services, such as physiotherapy, accommodation, beautician appointments etc. 

Beyond all, a cancellation policy is a proactive and simple way to establish mutual respect for both the client’s and business’ time.

Use this Cancellation Policy If:

• Your business would like to avoid and compensate for cancellations or rescheduled appointments.

• You want to create a proactive and simple way to establish mutual respect for both the client’s and your business’ time

Important considerations

• Enforcing a cancellation fee on a client who fails to show due to something beyond their control, is unreasonable. Charging the fee is reasonable when a client cancels ‘last minute’ for the purposes of convenience, price, choice etc. 

• The amount charged as a cancellation fee should be reasonable and consistent with costs incurred by the business. Cancellation fees are sometimes taken as non-refundable deposits (amounting to 10% of the services costs). 

• If the fee is unreasonable, Australian Consumer Law may regard the policy as an unfair contractual term.

• Your cancellation policy should be displayed clearly on business premises, websites, marketing materials, registrations forms etc. Clients who make bookings over the phone should also be verbally notified.

• If the policy is not communicated when the appointment is booked, and a cancellation fee is later charged, ASIC may consider the fee to be an ‘unauthorised transaction’ under their ePayments code.

• If you have any concerns, you should seek  advice from a business lawyer.

What does this Cancellation Policy cover?

• Objectives/Background

• Cancellation conditions

• Cancellation Process

• Late Arrivals

• Applicable Fees

• Acceptable circumstances for waiving cancellation fees

• Refund Policy

• Review options

• Client agreement

Further information:

• Are Cancellations Fees Legal?

• Employee Handbook