Parent Contracts: Facilitating the collection of school fees

The independent schools that we act for have unsurprisingly found more parents defaulting on the payment of school fees in the present economic climate. In such circumstances, it is all the more important that schools ensure that their parent contracts facilitate the collection of unpaid fees.

The inclusion of provisions relating to the following matters should assist in that process.

1. Contract in place with the person paying the fees

The school needs to ensure that steps are taken to ensure that anybody from whom it receives payment of its fees, but who has not signed the enrolment form, is bound by its terms and conditions.

This scenario may arise where a third party (e.g. a grandparent) takes over paying the fees part way through the child’s attendance at the school.

It is essential that the school has evidence of having brought its terms and conditions to the attention of anybody who pays its fees, and ideally has written confirmation from them that they agree to be bound by those terms.

2. Clear terms on liability for school fees on child ceasing to attend

The contract needs to specify the fees for which parents will be responsible in the event of either a child being withdrawn (e.g. one term’s fees in lieu of notice) or expelled (e.g. no refund of fees in respect of the term in which expulsion takes place).

In order to avoid any suggestion that the imposition of fees in lieu do not constitute an unenforceable penalty, it would be prudent for the contract to set out the rationale for the charge (e.g. to allow the school to budget on the basis of pupil numbers in a particular year group throughout the academic year)

3. Costs of pursuing payment of fees

The inclusion of an appropriately drafted term may potentially provide the school with the possibility of recovering costs when it would otherwise not be in a position to do so e.g. where court proceedings are not issued or where the matter is allocated to the small claims track.

4. Variations and waiver

Schools would be best to include in their parent contracts appropriate restrictions on the circumstances in which the terms of the agreement can be varied. It would be prudent to name in the contract one or two individuals who are solely authorised to agree variations. The school must ensure that the practice of its employees accords with the terms of the contract because it can be the case that, notwithstanding the express terms of the agreement, the school may be bound by any indulgence on the payment of fees given by members of staff.

For more information, please contact Stephen Cole on 01604 233233 or stephencole@hewitsons.com