Travel Nurse Contract Cancellation Policy: What You Need to Know 2026

Travel Nurse Contract Cancellation Policy: What You Need to Know 2026

Understanding contract cancellation policies is crucial for protecting yourself as a travel nurse. This guide explains common cancellation scenarios, your rights, guaranteed hours, and how to negotiate better cancellation terms.

Why Cancellation Policies Matter

Travel nurse contracts can be canceled for various reasons, often leaving nurses without income or housing. Understanding your cancellation rights and negotiating favorable terms can protect you from financial hardship.

Common Cancellation Scenarios

1. Low Census Cancellations

What it is: The facility reduces staffing due to low patient census (fewer patients than expected).

Common terms:

• Facility can cancel with 48-72 hours notice
• You may receive no pay for canceled shifts
• Some contracts offer “guaranteed hours” protection

2. Early Termination by Facility

What it is: The facility ends your contract early for reasons like:

• Budget cuts
• Change in staffing needs
• Performance issues (rare)

Your rights:

• Review your contract’s termination clause
• Understand notice requirements
• Know your guaranteed hours status

3. Cancellation by You

What it is: You decide to end the contract early.

Common consequences:

• May owe repayment of sign-on bonuses
• May be ineligible for completion bonuses
• Could affect future contracts with same agency/facility

4. Contract Completion

What it is: Your contract ends as scheduled (typically 13 weeks).

Benefits:

• Completion bonuses (if included)
• Positive reference for future contracts
• No penalties

Understanding Guaranteed Hours

Guaranteed hours protect you from lost income due to cancellations or low census.

With Guaranteed Hours

If your contract includes guaranteed hours (e.g., “guaranteed 36 hours/week”):

• ✅ You get paid for guaranteed hours even if canceled
• ✅ Facility must pay you even during low census
• ✅ Protects you from last-minute cancellations

Example:

• Contract: Guaranteed 36 hours/week at $50/hr
• Week 1: Facility cancels all shifts (low census)
• You still get paid: 36 hours × $50 = $1,800

Without Guaranteed Hours

If your contract doesn’t include guaranteed hours:

• ❌ No pay for canceled shifts
• ❌ No protection during low census
• ❌ Income uncertainty

Example:

• Contract: 36 hours/week at $50/hr (NO guaranteed hours)
• Week 1: Facility cancels all shifts (low census)
• You receive: $0

What to Look for in Cancellation Clauses

✅ Favorable Terms

• Guaranteed hours - Minimum hours guaranteed per week
• Notice period - Facility must give 2+ weeks notice for early termination
• Cancellation pay - Payment for canceled shifts (rare but possible)
• No penalties for you - You can cancel without owing money (except bonuses)

❌ Unfavorable Terms

• No guaranteed hours - No protection from cancellations
• Immediate cancellation - Facility can cancel with no notice
• Repayment clauses - You must repay bonuses if you cancel
• No cancellation pay - No compensation for canceled shifts

Negotiating Better Cancellation Terms

1. Request Guaranteed Hours

Ask for: “36 guaranteed hours per week” or “minimum 144 hours per pay period”

Why it matters: Protects your income even during low census or cancellations.

2. Negotiate Notice Period

Ask for: “14-day written notice for early termination by facility”

Why it matters: Gives you time to find a new assignment.

3. Understand Low Census Policy

Ask about:

• How many hours can be reduced due to low census?
• Is there a minimum guaranteed hours threshold?
• What happens if facility cancels shifts?

4. Request Cancellation Protection

Ask for: Protection if facility cancels contract within first 2 weeks (before you’ve moved/housed)

Why it matters: Prevents financial loss if facility cancels immediately after you accept.

Red Flags in Cancellation Policies

Watch out for contracts that:

• ❌ Have no guaranteed hours clause
• ❌ Allow immediate cancellation with no notice
• ❌ Require you to repay all bonuses if you cancel
• ❌ Don’t specify what happens during low census
• ❌ Make you responsible for housing costs if canceled

Your Cancellation Rights

Right to Review Contract

• ✅ Read entire contract before signing
• ✅ Ask questions about cancellation clauses
• ✅ Negotiate better terms if needed
• ✅ Get everything in writing

Right to Clarification

• ✅ Ask recruiter to explain cancellation policy
• ✅ Request examples of cancellation scenarios
• ✅ Understand guaranteed hours (if any)
• ✅ Know your obligations if you cancel

Right to Legal Review

If you’re unsure about contract terms:

• Consider having an attorney review complex clauses
• Consult with experienced travel nurses
• Use resources like travel nurse forums/groups

What to Do If Your Contract Is Canceled

Immediate Steps

1. Review your contract - Understand your rights and obligations
2. Contact your recruiter - Understand the cancellation reason
3. Check guaranteed hours - See if you’re protected
4. Document everything - Save emails, contract, communications

Financial Protection

1. Emergency fund - Have 2-4 weeks of expenses saved
2. Housing arrangements - Understand lease terms and cancellation policies
3. Travel insurance - Consider insurance for canceled travel plans

Finding a New Assignment

1. Contact your agency - They should help you find a new assignment quickly
2. Use multiple agencies - Don’t rely on just one agency
3. Network - Reach out to other travel nurses for leads
4. Be flexible - Consider different locations/specialties for faster placement

Common Cancellation Scenarios & Solutions

Scenario 1: Canceled After 1 Week (No Guaranteed Hours)

Situation: Facility cancels your contract after 1 week. No guaranteed hours in contract.

Impact: You lose 1 week of pay and may owe housing costs.

Protection: Negotiate guaranteed hours and early cancellation protection before signing.

Scenario 2: Low Census - Reduced Hours

Situation: Facility reduces you from 36 hours to 24 hours due to low census.

Impact: You lose 12 hours of pay (if no guaranteed hours).

Protection: Request guaranteed hours minimum (e.g., “guaranteed 36 hours minimum”).

Scenario 3: You Need to Cancel

Situation: Family emergency requires you to cancel your contract.

Impact: May owe repayment of sign-on bonus, lose completion bonus.

Protection: Understand cancellation penalties before signing. Some agencies are understanding about emergencies.

Questions to Ask Your Recruiter

Before signing a contract, ask:

1. “Does this contract include guaranteed hours?”
2. “What happens if the facility cancels my contract early?”
3. “What’s the low census policy? Can my hours be reduced?”
4. “How much notice will I get if the facility cancels?”
5. “What happens to my housing if I’m canceled?”
6. “Are there any penalties if I need to cancel?”
7. “What protection do I have in the first 2 weeks?”

Best Practices

Before Signing

• ✅ Read entire contract carefully
• ✅ Ask about cancellation policies
• ✅ Negotiate guaranteed hours
• ✅ Understand all clauses
• ✅ Get everything in writing

During Assignment

• ✅ Document all hours worked
• ✅ Keep contract handy
• ✅ Communicate with recruiter regularly
• ✅ Save all communications

If Cancelled

• ✅ Review contract immediately
• ✅ Contact recruiter for new assignment
• ✅ Understand your financial obligations
• ✅ Learn from experience for next contract

Conclusion

Understanding contract cancellation policies protects you from unexpected financial loss. Always:

• Negotiate guaranteed hours when possible
• Read contracts carefully before signing
• Ask questions about cancellation scenarios
• Have an emergency fund for unexpected cancellations
• Document everything related to your contract

Related Resources:

• Travel Nurse Contract Negotiation Guide
• Compare Contracts Tool - Compare multiple offers side-by-side
• Pay Calculator - Calculate your pay including guaranteed hours

---

Disclaimer: This article is for educational purposes only and is not legal advice. Contract terms vary by agency and facility. Always review contracts carefully and consult with legal professionals for specific situations.