If you work with four- or five-year-olds and are not exempt or eligible to be on the Early Years Register, you will need to comply with the EYFS requirements. But in talking with SkillsActive and the DCSF, the important thing to do is follow playwork principles as outlined at www.skillsactive.com/playwork/early-years-foundation-stage.
Observation of a child's self-directed learning and development should not be intrusive or time consuming. You observe individual children's needs and preferences when planning activities, so build on that. For example, agree a theme for a week and then get staff to fill out two or three-sentence observations that will give a snapshot of the children for team discussions.
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