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It is possible to use the recording if necessary. The recording of audio, even covertly, is not usually illegal as long as you do not record any personal information about third parties. However, if these were just general conversations in the nursery then it would not have been unlawful to make this recording and if necessary you can use it as evidence to cancel your agreement with the nursery. Whether it is going to be admissible as evidence in court is for the Judge to decide so it is no guaranteed that it can be used there but I am hoping that this would not get that far, especially if it is going to expose unprofessional behaviour by the nursery – they would like to keep such allegations under wraps rather than make them public knowledge by taking you to court.