Permanently ceasing to operate
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If a service permanently ceases to operate, the Secretary must cancel the service’s licence.
Regulation 32 Cancellation of Licences(external link)
The information on this page will guide you if you are planning to permanently close your service, or you want to know the steps the Ministry will take if the service has already ceased to operate.
There may be occasions where you need to close your service for a period, but you intend to reopen it. If this happens you must apply for a temporary closure. For information on how to apply for a temporary closure go to
For information on what to do if your service needs to close because of an emergency outside of the control of the service go to
Funding Continuity for Emergency Closures(external link)
Regulatory requirements
A service is considered to have permanently ceased to operate if any of the following apply;
- The service provider notifies the Secretary the service has permanently ceased to operate (Reg 32(1)(da))
- The service has not been operating for a period of three months or more as evidenced by two or more of the following (Reg 32(1)(db))
- there are no children enrolled in, or attending or participating in the service, or
- there are no staff employed or engaged in the service, or
- the service provider has not claimed any grant that would ordinarily be available in respect of the service
If a service has been granted a temporary closure under Reg 19, it is not considered to have permanently ceased to operate and the service’s licence will not be cancelled unless:
- You decide not to reopen the service following temporary closure, or
- You notify us during the period of the temporary closure that you intend to permanently close the service, or
- there are other reasons to do so
What you need to do
If you have decided to close your service permanently, you are welcome to let us know verbally. However, to avoid any uncertainty, you must also confirm your decision in writing and include the date the service will cease to operate.
Failure to let us know a service has ceased to operate (unless in an emergency) is a breach of Section 28(1) of the Education and Training Act 2020 and the ECE Funding Handbook.
Next steps
If the service has permanently ceased to operate, the Secretary must cancel the service’s licence.
If you have notified us in writing you intend to close your service permanently (Reg 32(1)(da)), we will acknowledge the closure, cancel the licence and publish the cancellation notice in the Gazette.
If it comes to the Ministry’s attention that a service has not been operating for a period of three months, a temporary closure has not been granted and two or more of the situations described in Reg 32(1)(db) apply, we will consider the service has permanently ceased to operate and issue you with a Notice of Intention to Cancel.
If a Notice of Intention to Cancel is issued, you will be provided with the opportunity to make representation and any representation received will be considered before a final decision is made.
If the final decision is to cancel the licence you will be notified.
We will endeavour to contact you to discuss the situation and explain the licence cancellation process before a Notice of Intention to Cancel is issued.
Key things to note
Children must not attend while the service is not operating.
The service will not be eligible to receive funding when it is not operating.
Under current legislation if a centre-based service closes, anyone wanting to operate a service in the same premises will need to apply for and be granted Network Approval before applying for a licence.
Network Approval(external link)
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