Retainer fee! Help, advice?

Samantha02

Sorry it’s a long one!

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

  

Jonesy1977

Quick google https://www.surreycc.gov.uk/people-and-community/families/childcare/choosing-and-arranging/retainer-fees-and-deposits
It looks like you have a agreed to pay a retainer to save your childcare space should you need it at a reduced rate, retainer suggests non refundable and not a credit for future services (I have got that from the link above so not sure its the case)
What paperwork have you signed?  Check the terms and conditions you have agreed to (if you have agreed to any?)
Regarding the redundancy, I am sorry to hear this.  I would not necessarily draw the conclusion that it is personal, but can understand why you may feel that.  
I would suggest using google to find a web page from your local council similar to the one above , with regards legal advice I am sure it will depend on what you have signed for and the terms and conditions attached to this. 

Samantha02

Thanks I didn’t sign any documents regarding to retainer fees. Never really agreed to it, was told this is what is happening 😕.

Grumpy_chap

Samantha02 said:

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.
  

This part does not make sense.  Normally, business either treat staff the same as any other customer or offer a discount as part of a reward and recognition package.  To charge staff a premium is counter anything I ever heard of before. 

In this scenario, it sort of sounds like the nursery was not passing on all the furlough they received as they have possibly clawed back some as increased charges for staff only.  That was specifically against the rules of the furlough payments.

Samantha02

I was told this: Staff should be paying 80% of their fees, in line with the furlough at 80%, this is because you already get 25% off your fees, so effectively you should have been charged 60% of the full fee rate.

Grumpy_chap

The link to the furlough rate is not correct and entirely irrelevant.  The employer should give all furlough funds received to the staff for which the grant has been claimed and without any deductions.  That approach would only be fair if the nursery asked all other parents what percentage of their regular income they were now on and that influenced the amount of retainer they were asked to cover.  Obviously, the nursery does not and could not get that information for all parents.

Please forgive me if I've missed it, but I don't think you said what percentage the non-staff have been asked to pay during the shut down.  It may be coincidence that the amount that all parents have been asked to pay was 60% which is coincidentally 80% of 75%.  What did it say in the letter to all parents?

Also, did it say in the letter to all parents what costs the retainer was to cover?

Finally, was your furlough paid at 80% or topped-up?

Samantha02

Thanks for the reply! They were charged 30% yes I have all of this in writing through email but no it didn’t say what it was to cover..just to keep the business afloat..though they’re the only nursery in my area to do this and they’re a small chain! Furlough was 80%.

Grumpy_chap

Based on what you have said in the thread, taken as a whole, I would say your retainer should be either 30% or 22.5% (75% of 30%)

Jonesy1977

I agree with @Grumpy_chap but from what I can gather if you have not signed terms and conditions he cannot hold you to paying the retainer post redundancy.  How long have you been there?  I would speak with ACAS https://www.acas.org.uk/your-rights-during-redundancy as what you dont want is retainer withheld as part of your redundancy payment - I would not accept this

Samantha02

Thanks was unsure if Acas would be able to help
or not? I’ve been
there just shy of two years so no redundancy pay, they can’t take it from my furlough can they?

Jonesy1977

Did they take it from salary at source before?  if not how did you pay it?  Theoretically they can take it from Furlough because Furlough is not a payment it is a concept and therefore you receive 80% of your normal pay and the company claims this back, therefore they may stop an element for your "retained place"  I would speak to ACAS specifically about the redundancy as you should now get paid your notice (not furlough) at 100% and they may be able to advise regarding teh retainer piece.  If you have not signed anything this will help.