DD1 had a fungal infection that lasted on and off for months - very frustrating! I guess it was contagious in that both my girls were sharing cloth nappies at the time and he suggested putting one into disposables while she still had the rash so that DD2 didn't end up with the same rash. Can't see how that should possibly be an issue at a day care centre though.
I'm not sure if there are different restrictions for daycare, but my understanding of medical certificates and privacy is that the nature of the illness or whatever is none of anybody's business, and that the organisation must accept a doctor saying you are fit (or unfit as the case may be) for work or school.
I hope your little one's poor bottom gets better soon.
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