Marks & Spencer plans to cut redundancy benefits for its staff by up to 25%, prompting speculation the retailer may be considering cutting jobs.
According to The Times newspaper, M&S will reduce the maximum payout that employees can receive in relation to their length of service from 70 weeks to 52 weeks. Anyone aged over 41 would receive three weeks' pay for each year they had worked at M&S if made redundant, compared with 3.75 weeks' pay at present.
M&S is in consultation with its national employee representatives about the changes. A spokeswoman for M&S said: "This is something we do from time to time to make sure we are up to date with what the wider market is doing."
"Under our proposed new terms we remain well ahead of the statutory requirements," she added.
The Times newspaper said that M&S' proposed new terms of three weeks' pay for employees aged over 41, matched the terms at John Lewis and was ahead of Gap, the Co-op, Next and the Arcadia Group.
However The Times added that a typical employee aged 49 with 30 years service at M&S would see their potential redundancy payoff fall by £9,000 to £26,000 under the proposed terms.