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Getting this wrong could be costly. An unfair dismissal award can cost up to £80,000, whilst there is no limit for discrimination awards.

There are strict rules to follow on issues like:
• consultation process
• selection process
• notice period
• payments due to staff

It would be a wise investment to subscribe to a human resources (HR) support service, which will both provide guidance and indemnify you against legal action, at a probable annual cost in the range £1500 to £3000. If you decide you cannot afford to make this investment, then it is vital that at least one of your trustees makes it their business to understand the rules around redundancy. (If you are already a subscriber, it would be unwise to seek savings in the face of a funding crisis by terminating your subscription!)

The key source of advice for employers, including interactive guidance, is to be found at:
Business Link

If you are going to adopt a DIY approach to HR, then you should read up on the subject to give yourselves wider contextual knowledge as well as a ready reference for queries, for example by buying a copy of Voluntary Sector Legal Handbook at a cost of around £60.