Kids Academy Hope Island: Closure continues to hurt forgotten staff and families

Unpaid staff, ‘hurt’ families and a broken friendship are the fallout of the Kids Academy Hope Island closure over a month on. READ THE STUNNING SAGA

TEACHERS and parents caught out by an ugly daycare centre business dispute between two former “best friends” are fighting for entitlements and bond months after its shock closure.

The Kids Academy Hope Island – attended by 25 kids daily with a staff roster of 40 – abruptly shut in mid-June with teachers and enrolled families given overnight notice.

The closure hit after a two-year legal battle between the centre operator Scott Hookey and landlord John Whitelaw.

Kids Academy Hope Island operator Scott Hookey (left) and its landlord John Whitelaw whose court battle has forced the childcare centre to suddenly close. Picture: Supplied

The two ex-best mates, according to a Facebook post by Mr Hookey, had originally partnered in the centre “based on trust and some written documents” but it was later formally structured with him as operator and Mr Whitelaw as landlord at the behest of their bank.

A Supreme Court decision reveals after two years of legal wrangling about the structure, the pair agreed on a Hookey entity making $524,389 available via bank guarantee to a Whitelaw entity. But they could not agree on the arrangement timing and ultimately the Kids Academy lease was terminated, with the court determining Mr Hookey was in default. Mr Hookey has said he will appeal.

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A parent and a teacher – both anonymous – now claim they are waiting for bond and entitlements from the operator.

The parent claimed they were one of many families not to get their bond back. The parent, with one kid signed for full-time daycare and two in its after-school care program, claimed they were owed almost $600.

Meanwhile, the teacher claimed letters to the Academy about staff complaints of not receiving full entitlements were going unanswered.

Alyson Faulkner with her Grandaughter Ava (3) and other families after Kids Academy Hope Island was closed. Photograph: Jason O'Brien

The teacher said they and other staff received four weeks final notice pay and holiday pay, but claimed those with the company more than five years should get 10 weeks redundancy pay.

The Fair Work website supported the teacher’s claim, stating employees with continuous service for five years are owed 10 weeks redundancy pay.

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The teacher also said staff had been informed by a letter from the centre’s umbrella company Exceed Early Education and Care saying payment disputes were in the hands of their legal team and were taking so long due to staff members leaking information to the media.

Mr Whitelaw declined to comment on the legal row and closure.

General view of Kids Academy Hope Island which has closed. Photograph: Jason O'Brien

Exceed Early Education and Care CEO Amanda Grassby said: “Staff have received to my knowledge, their termination and entitlements pay.”

“I understand there is an application being put forward to the Fair Work Commission to provide relief from the redundancy payouts due.

“As a result of information going to the media from an internal source all management of the business including financial and HR matters were referred to our legal team for management as we still have an appeal pending.

“The processes then for payments are not in our hands, which could have meant a more streamlined approach, not being managed and determined through a third party.”