redundancy pay - registered charity

rolymo_2

Hi -
i currently work for a preschool, which is a registered charity -run and managed by a voluntary committee made up of the parents.
it looks like the preschool will be closing due to financial problems (the money is apparantly running out !)

so - all the staff will be made redundant - my question is, what happens if there is not enough money to pay the staff their entitlements (redundancy, outstanding holiday pay and final hours worked)

i also used to be a commitee member - and from what i remember the commitee can be held financially liable - but are able to take out insurance to cover this...hopefully they are insured, but if not what do we (as staff) do ?

mysk_girl

As far as I know, and speaking as the chair of a preschool committee, the committee members are personally liable. I'm in the middle of trying to incorporate our charity to avoid this exact scenario.

I'm not sure of the ins and outs, but I suspect you may have to sue the committee members for the money. I really hope this turns out well for you.

getmore4less

AIUI the trustees/directors are personaly liable that may not be all of the comitte running it.

Pay and redundancy is a liability that should be ringfenced.

I think you can get advice from the charity comission hey should intervene/help if the charity is being run insolvent.

there have been a few threads on this here and other boards a search should fine some of them.