THE $7,500 question: to press on with their lawsuit, or drop it and take the money - the initial portion of a compensation package?

In the end, the group - about 50 academic staff affected by the closure of the University of New South Wales (UNSW) Asia campus - dropped their lawsuit idea.

Their unanimous decision came in the middle of last month, after it seemed likely that the Singapore campus would be allowed to go insolvent.

If that happened, they could lose the rest of the 20 weeks' base salary the university had promised each of them in their compensation package.

Their grievance began in early August, after the university sent an e-mail to academic staff which said 20 weeks' salary would be paid as compensation for their lay-off.

There would be two separate payments. Staff would receive an initial $7,500.

They would receive the rest of the money from UNSW Sydney but only after they signed a deed of release.

This meant they could not make any further claims against the university.

The academics were upset because they had been told earlier they would not have to sign any 'discharge' form.

The email also said that, judging from the claims against UNSW (Asia), it was likely that UNSW (Asia) would go insolvent.

Under the Companies Act, when a company becomes insolvent, it has to pay its staff five months' salary or $7,500, whichever is lesser.