With 40,000 jobs being cut in the City, employees are being advised to scrutinise their contracts, to see where they stand.

The axe is swinging at UBS, Citi, Merrill Lynch, RBS/ABN Amro and, of course, Bear Stearns. And, so far, some of the pay-offs look relatively generous. Bear Stearns is giving 26 weeks’ salary for staff with between one and nine years’ service. There’s also a pro-rata proportion of the 2007 bonus, and pay for notice periods.