Nursery retainer fees.

[Samcj02]

Hi I’ve posted on here before regarding my retainer fee.

Bit of background-
I was put on furlough when the country went in to lockdown, I work at the nursery my child attends.

Received email to all parents saying that we need to pay a percentage of retainer fee if we can afford to, I know a lot of parents who decided they couldn’t pay and didn’t.

Received a call a few days after this to say actually as you’re staff your being chrgaed double the amount of regular parents. I was slightly dumbfounded and just said ok and ended the conversation.

I then emailed the manager/owner saying I couldn’t afford to pay, thinking if that was the case I wouldn’t have to pay as other parents who couldn’t afford it didn’t pay and the email did say “if you pay retainer!” Etc. Pointing that it was optional! I was stood corrected saying that I was lucky to have furlough and I need to pay etc.. I then decided I needed to pull my child out of nursery as could no longer afford the fees and started to arrange alternative childcare.

Was the told it was refundable so started to pay it off, was the told
Weeks later it’d not refundable and also that I’m being made redundant. Can’t help but think his whole retainer fee was part of it and feels personal

Then received further correspondence saying it still needs to be paid! I’ve been made redundant I have no money! Are they legally entitled to get this money off of me, and is there any legal advice
I can receive? Unsure who or where to contact! It’s making me seriously stressed 😥 x

A retainer fee keeps your child’s place available. You decided that you didn’t want the place retaining so you are not liable. Legally notice periods are not applicable as the nursery was unable to provide the service.

Somewhere hidden amongst all the government coronavirus info, issued around April/May time this was clarified.

Thankyou so much for that I’ll try and look and find the information! Added stress at what is already a stressful
Time x

www.gov.uk/government/publications/cma-to-investigate-concerns-about-cancellation-policies-during-the-coronavirus-covid-19-pandemic/the-coronavirus-covid-19-pandemic-consumer-contracts-cancellation-and-refunds

Particularly the section Ongoing Contracts which says “ may allow a business to require payment of a small contribution to its costs until the provision of the service is resumed, but only where the contract terms set this out clearly and fairly.”

Thank you so much @Comefromaway x

Timeline the events and have copies of emails/correspondence. Keep that information safe should they ever take any legal action. Legally I have no idea if you owe them any money. If you feel that under your contractual agreement that you do not, then don't pay and wait to see if they take any action. However as they are also your last employer you may be wanting a reasonable reference and it can get messy when you have a disagreement with a service provider who is also your ex-employer.

Seems very unreasonable to me that they can tell staff that they have to pay extra. However you were getting a discount of some sort to start with so maybe it was badly phased and that the discount no longer applied due to exceptional circumstances.

I then decided I needed to pull my child out of nursery as could no longer afford the fees and started to arrange alternative childcare.

So you gave notice on your child's place. Fees would have been payable until the end of that notice period as per the contract. So I don't think a retainer fee during that notice period would be unreasonable.

Was the told it was refundable so started to pay it off, was the told Weeks later it’d not refundable

Bad communication, they should never have said it was refundable.

I’m being made redundant.

Sorry to read that. They should follow a redundancy procedure to select staff who are to be made redundant. They can not simply select you as there will likely be more than one person doing your role or very similar role. The role is redundant... if you worked with a particular age group and the number of children in that group is expected to be lower than usual, then that could be a valid reason for making your role redundant.

Some nurseries are struggling, some have already closed, some expect to be closed within the next 6 months.
www.daynurseries.co.uk/news/article.cfm/id/1630171/half-nursery-staff-say-nursery-risk-closure-covid-19

So you gave notice on your child's place. Fees would have been payable until the end of that notice period as per the contract. So I don't think a retainer fee during that notice period would be unreasonable.

However the CMA has a different view

"Where a consumer receives regular services in exchange for a regular payment as part of an ongoing contract, the CMA considers that consumer protection law:

will normally require the consumer to be offered a refund for any services they have already paid for but that are not provided by the business or which the consumer is not allowed to use because of Government public health measures (this may be a partial refund of the total amount the consumer has paid, to reflect the value of the services already provided);

will normally allow the consumer to withhold payment for services that are not provided by the business or which the consumer is not allowed to use because of Government public health measures;

may allow a business to require payment of a small contribution to its costs until the provision of the service is resumed, but only where the contract terms set this out clearly and fairly."

Thanks for your comments, just to add I’ve never signed anything or had anything in writing!

She didn’t charge me for the notice period just the retainer..!!

You don't have to pay for a service you are not receiving (because the provider isn't providing it, as opposed to you choosing not to use it eg because you are on holiday).

Therefore you do not have to pay a retainer.

Nurseries that asked for one were taking the mick given that they were able to furlough staff and the CMA was very clear that double recovery was unacceptable.

may allow a business to require payment of a small contribution to its costs until the provision of the service is resumed, but only where the contract terms set this out clearly and fairly and this would not have been included because nobody saw covid coming

Thanks everyone! Im really worried! I have this and the fact the they never paid for any training I done there x