Cancelled Xmas Work Do - Venue being unreasonable

[SXGuy]

Just thought id share something my wife told me yesterday.

Her work were planning a xmas do in November, and had hired the same place as last year.

Some of the directors thought it wasnt fair to spend money on a party when most of the staff wont be getting a wage increase this year, so they set to cancel it.

So they ring the venue that they had booked and said they would be cancelling.

The venue agreed, but they said there is a 40% cost charge to cancel, which my wife's company thought was reasonable, but asked for a breakdown of what that 40% was in connection to.

So they want to charge 40% of the cost for the hotel rooms booked, thats fair

They wanted to charge 40% for the venue costs, thats fair also.

Then this one killed it, they said, they wanted to charge 40% of the cost of the drinks that were sold to the companies staff last year!!

Now, i know you will always get cancellation charges and sometimes its between 10% to 100% depending on when you cancel, but how the hell can they justify charging 40% on what they spent on drinks last year???

Drinks are optional, they are not included in the package deal, nor are they manditory, so what makes them think they have the right to charge this i dont know.

My wife's companies HR department was going to roll over and accept this until she kicked up a fuss, but then again, from what shes told me about HR at her work, im not suprised. Ask them to tie a shoelace and they would prob get stuck.

[SaltnVinegar]

Re: Cancelled Xmas Work Do - Venue being unreasonable

Considering they are cancelling with over 3 months before Christmas is expecting to pay 40% of anything considered reasonable?!

Ok, to cover any costs they may have incurred to date that would be fair.

But with over 3 months to go could the venue really argue that the cancellation has caused them a loss of revenue?

[Never-In-Doubt]

Re: Cancelled Xmas Work Do - Venue being unreasonable

I don't think any of the above is fair, we are in August - November is 3+ months away and as such there should be no cancellation fee for anything unless you requested bespoke items such as nameplates for instance.

I would be going back to them saying get to fuck or see you in court. Nobody other than holidays charge for cancellations in such a way, you're being taken for a ride.....

I would say no chance, not on your little nelly

See this: ---> http://whatconsumer.co.uk/unfair-contract-terms/

Pretty much spells it out to you

[Never-In-Doubt]

Re: Cancelled Xmas Work Do - Venue being unreasonable

But with over 3 months to go could the venue really argue that the cancellation has caused them a loss of revenue?

Ditto - totally agree. Unfair Terms comes into play here

[SXGuy]

Re: Cancelled Xmas Work Do - Venue being unreasonable

thanks guys, i shall pass that link on to wifey lol

[SA Gold]

Re: Cancelled Xmas Work Do - Venue being unreasonable

That's a bloody cheek!

[jen_br]

Re: Cancelled Xmas Work Do - Venue being unreasonable

`ACTUALLY this is standard practice in hospitality ... Nov Dec is the BUSIEST times of year and people book over a year in advance. I am guessing this was a function for a friday or saturday? (those days have premiums) now check your contract you will probably see there are cancellation fees.

40% of drinks is wrong. I have never seen a place do that... Food cost yes but your within the guidelines for cancelling that.

If your wife wants to send me the hospitality agreement i can look at it for you!

[Never-In-Doubt]

Re: Cancelled Xmas Work Do - Venue being unreasonable

Jen

It's November and regardless if it's the norm, unfair contract rules would generally supersede a localised restaurant policy!

[jen_br]

Re: Cancelled Xmas Work Do - Venue being unreasonable

I dunno they still probably signed a contract which would over ride no? It is the end of Aug... and novemeber in catering terms isn't far.

Plus they could probably prove loss of earnings as they have booked a busy weekend day.??

looking at it from both angles

[PlanB]

Re: Cancelled Xmas Work Do - Venue being unreasonable

I don't know how many people would have been going to the Christmas party, but the restaurant may have had to pre-book extra catering staff and place an advance drinks order with their supplier etc, so the restaurant will also have to pay them off in the event of a cancellation. The catering business is very much a supply chain thing.

[PlanB]

Re: Cancelled Xmas Work Do - Venue being unreasonable

When they booked, the cancellation charge should have been specified somewhere as is when you book flights, hotels, etc. Was it?

What is really bizzare is the argument they are using about last year's drinks!

That baffled me too. Perhaps they were using it as a guesstimate of the profit they would lose on the drinks' sale this year. But what if SXGuy's wife and her office mates had all gone teetotal in the last 12 months

I'd be surprised if they manage to succeed on that part of the claim.

[Never-In-Doubt]

Re: Cancelled Xmas Work Do - Venue being unreasonable

I dunno they still probably signed a contract which would over ride no? It is the end of Aug... and novemeber in catering terms isn't far.

Plus they could probably prove loss of earnings as they have booked a busy weekend day.??

looking at it from both angles

---> The Unfair Terms in Consumer Contracts Regulations 1999

Basically The Unfair Terms in Consumer Contracts Regulations 1999 would supersede their internal terms as that's what they do, i.e. they assess fairness in terms and 40% when we're talking 9-10 weeks away is rather extortionate.

Granted, if the business can prove loss of earnings by refusing another firm or whatever then fine, they may have a leg to stand on but instead of paying the fee it'd be more prudent to allow the staff to continue with the booking themselves, with the business still footing 40% so the staff only pay the remainder 60% and still get their party and/or tell the venue they're sub-letting the party and then sell the booking themselves. The venue's terms will not usually account for such eventualities....

I don't know how many people would have been going to the Christmas party, but the restaurant may have had to pre-book extra catering staff and place an advance drinks order with their supplier etc, so the restaurant will also have to pay them off in the event of a cancellation. The catering business is very much a supply chain thing.

But they have plenty of time to make such arrangements, nothing would be set-in stone this early on.

Oh, also see this ---> Gaby Huddart on cancellation fees at restaurants | Life and style | The Guardian

The top restaurants only require 2-7 days cancellation notice - and I mean top restaurants

[jen_br]

Re: Cancelled Xmas Work Do - Venue being unreasonable

Top restaurants have buying power and have strings they can pull.

When I was at the Hilton at Leeds they have a 12 week cancellation policy starts from 75% refund and works its way down to 0.

I would be happy to pay the rooms, the venue etc. But would argue what if you were a new customer how would they cost out the 40% for drinks.

[Never-In-Doubt]

Re: Cancelled Xmas Work Do - Venue being unreasonable

No chance. I'd never pay as its unlawful and unfair terms would protect me unless THEY provided proof of financial loss.
Sorry Jen you're on AAD hence you're going against the very thing we fight for - consumer rights

No legal right to charge it and the bank would honour a full chargeback on any deposit paid as well. The law is on our side here fortunately. I know you work in that industry but come on, this is a bog standard Xmas party - not like a wedding or specialised event - dont confuse the two!

No additional expense or bespoke items are necessary nor would the venue be a penny out of pocket at this stage.

ps Hilton cancellation policy:

Cancellation policy
A credit/debit card is required to secure your reservation at HILTON LEEDS CITY HOTEL in LEEDS. There will be no cancellation charge if booking is cancelled before 16:00 BST, on the day of arrival. If the booking is cancelled later, or in the case of a no-show, the first night will be charged.

[SXGuy]

Re: Cancelled Xmas Work Do - Venue being unreasonable

Wow, guys you have took to this thread greatly, really apreciate it, if my email notifications were working id of seem these comments earlier lol.

I agree with what everyone is saying, whether or not they could, if it was me, id prob take it on the chin and pay 40% for the rooms and venue, but not ever for the drinks.

As said before, what if everyone was T Total? what if it was their first booking, how would they measure what that 40% was.

What if it was an AA xmas do? could you imagine the court case looming on that one!

Just spoke to the wife, she seems to think her HR department are gonna just roll over and pay it, silly billies!