The retail giant said yesterday it proposed to cut maximum redundancy pay-outs staff could receive from 70 weeks’ pay to 52 weeks’.

It also plans to reduce pay-out levels to twice the statutory minimum, so anyone over the age of 41 would receive three weeks’ pay for each year worked, rather than 3.75 weeks’ pay.

Employees are furious about the moves but an M&S spokeswoman claimed the proposals were still “very generous” compared with retail rivals.

She refused to comment on the prospect of future job cuts but said the company periodically reviewed pay-out terms. The last check was in 2006.

M&S shares fell 16.50p to 255.75p.

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