First it was financial services, then manufacturing and retail — now no sector seems safe from widespread job losses. But as more and more companies prepare to wield the axe, what are your rights? How much protection do employees have under the law?

Legal advice is not only costly, it can be difficult to know where to start to look for a lawyer that is right for you. Times Online has teamed up with Russell Jones & Walker, a law firm with one of the UK's leading employment practices, to answer questions from our readers.

Please note, the answers given are intended to be a helpful preliminary indication of the possible legal issues based on the information provided. They should not be relied on as definitive legal advice as there are many factors that could affect your case. You should seek legal advice promptly, as there are short time limits in employment law cases.

I am employed by part of the Woolworths group and redundancy is a probability. I am 45, 46 in January, and have been employed for nearly 24 years. What redundancy can I expect ? Is it capped? How long will I have to wait for my redundancy payment? Is it taxed ? If I have to sign on, will my redundancy payment affect any benefit I may be entitled to ?

Gary

Your entitlement to a statutory redundancy payment depends on your age, length of service and gross weekly pay. The amount of redundancy payment an employee is entitled to receive is a week’s pay for each year of service up to a maximum of £330 per week, multiplied by 0.5 for each year of service under 22 years of age and by 1.5 for each year of employment undertaken aged 41 and over (but capped at a maximum of 20 years’ service).

Therefore if you earn £330 or more per week gross and were made redundant on January 31, 2009, on the basis of your age (46) and length of service you would be entitled to a redundancy payment of £7,425. This is calculated as follows:

5 years x 1.5 x £330 = £2,475
15 years x £330 = £4,950

This payment could be made by your employer tax free, as the law entitles an employee to receive a redundancy payment of up to £30,000 tax free.

Your employer should pay your redundancy payment on the termination of your employment. You will also be entitled to receive notice of the termination of your employment and pay in lieu of accrued holiday, pro rated to the termination date.

Your redundancy and notice payments may affect your right to claim social security benefits. If after receiving your payments upon termination you have capital valued at £6,000 to £16,000 then you will not be entitled to claim full Job Seekers Allowance or other benefits. If after receiving the payments you have capital of more than £16,000 then you will not be entitled to claim any Job Seekers Allowance or other benefits, but you will be paid your National Insurance Contributions. For more information on your entitlement to claim benefits you will need to contact your local Job Centre or Job Centre Plus on 0800 055 6688.

I have been with my company for 11 months. What rights do I have?

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