Disputes over fees are an unfortunate reality that many nurseries face. Whether it’s a parent refusing to pay or disputing the amount owed, it’s important to handle the situation carefully and follow a clear legal process.
We’ve laid out a step-by-step guide to managing fee disputes in a way that protects your nursery and maintains professionalism.
Step 1: Check your terms and conditions
The first step when a fee dispute arises is to review the terms and conditions in the contract that parents signed when enrolling their child. This should clearly outline payment expectations, due dates, and any penalties for late or missed payments. Make sure your contract is up to date and covers all scenarios, such as what happens if parents withdraw their child without notice.
Step 2: Communicate with the parents
Before jumping to legal action, try to resolve the issue with a conversation. Contact the parents and explain the situation calmly, referencing the terms they agreed to. Sometimes, disputes can be caused by misunderstandings or financial difficulties, and an open dialogue can help you reach an agreement.
Step 3: Send a formal reminder
If communication doesn’t resolve the issue, the next step is to send a formal written reminder. This should include:
- A summary of the outstanding fees
- A reference to the payment terms in the contract
- A clear deadline for payment (usually 7-14 days)
- A statement explaining that failure to pay will result in further action
Keep a record of all correspondence, including emails, letters, and notes from any meetings or phone calls.
Step 4: Issue a final demand
If the formal reminder goes unanswered, you may need to escalate the matter by sending a final demand. This letter should warn that legal action will be taken if the payment is not made by the deadline. Again, ensure you reference the contract and include all relevant details. This is often enough to prompt payment, as most parents will want to avoid legal trouble.
Step 5: Consider mediation
In some cases, it may be worth exploring mediation before taking legal action. Mediation is a voluntary process where an independent mediator helps both sides reach an agreement. This can be a quicker and less expensive way to resolve the dispute without going to court.
Step 6: Taking legal action
If all other steps fail, you may need to take legal action. This can be done through the small claims court, which is suitable for disputes under £10,000. Before doing so, it’s important to seek legal advice to ensure you have a strong case and that you’ve followed all the correct procedures.
To make a claim, you’ll need to:
- Complete a claim form through the government’s Money Claim Online service
- Pay a fee, which varies depending on the amount you’re claiming
- Wait for the court to issue a notice to the parent, giving them the opportunity to respond
If the court rules in your favour, the parent will be ordered to pay the amount owed, and you may also be able to claim back some of your legal costs.
Step 7: Enforcing the court’s decision
If the parent still refuses to pay after the court’s ruling, you may need to take enforcement action. This could involve employing bailiffs to recover the debt, but this should be considered a last resort.
Preventing future disputes
To avoid fee disputes in the future, ensure that your nursery’s payment policies are clear from the outset. Always have signed contracts in place and be proactive about chasing late payments. Regular communication with parents can also help prevent misunderstandings before they turn into disputes.
Dealing with fee disputes can be stressful, but by following the right legal process and keeping communication open, you can resolve the issue in a way that protects your nursery’s finances and reputation.
