Cancellation Policy

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