Daycare and cuddles

I work at a daycare and we just recently had a meeting that discussed some new rules. One of them being that we are no longer allowed to cuddle, let children sit on our laps or really being affectionate towards them. The reason being because a parent complained about it at another center.

I can understand the bigger kids (kindergarten age) but for any of the younger kids this is beguiling to me. Some of our kids don't sleep unless you rock them in your lap!

Which brings me to the question, do you think this is okay? Why or why not? And would you expect your day care teachers to play/cuddle with your children?