In Britain we have "reception" (when you're aged 4-5) which is the first year of primary school, and I assumed equivalent to your kindergarten. I don't recall there being much formal education in the same way as there is for the rest of school, but it was definitely more structured than preschool/nursery/playgroup that you'd go to beforehand.
OK, I think I was just thrown by the use of "passing" and "failing". Repeating the first year based on development makes sense, but "passing" and "failing" imply you're taking some kind of written exam and need to qualify for a position!