Because of reduced income our charity is considering making staff redundant and/or reducing staff hours to reduce expenditure.

1. I am confused at the amount of redundancy payable. I understand the maximum payment tax free is £30,000 but have read that the maximum weekly amount allowable is £330 from February 2008? We have staff whose weekly pay is higher than this, can the organisation base its calculation on this higher figure? The Trustees would like to do this in recognition of the dedication staff have shown to the organisation through difficult times and the trustees have a Delegated redundancy Fund based on the full weekly rate.

2. What would the situation be regarding offering staff reduced hours. I understand that they would not be obliged to accept and could ask for redundancy, but this would not prevent them from reapplying for the new post. Am I correct?

3. If staff hours were reduced to reduce costs to enable the organisation to be gradually closed and the staff then made redundant on what on what weekly rate would redundancy be based, the original weekly rate or the new reduced rate?

4. What would be the situation if the Trustees spent the charities delegated Redundancy Fund and did not have sufficient to pay redundancy pay to all staff?