Shock is often the first reaction followed by celebration &150 if you get a big tax-free lump sum pay-off &150 or

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Shock is often the first reaction, followed by celebration – if you get a big tax-free lump sum pay-off – or panic if you get only statutory redundancy, and are worried about paying the mortgage. Redundancy is increasing as downsizing takes place across industries – manufacturing, publishing, agriculture and telecoms. Being made redundant may feel like the end of the world but it is possible to turn a crisis into a positive career move."There is no doubt that redundancy is a major event in people's lives and can be very distressing," says Rachel Helson at recruitment consultants Blue Arrow. "People have a range of concerns – everything from financial worries to losing their daily routine and contact with colleagues they have known for years to concerns over job hunting."Marie Courtneidge, 37, was made redundant from her law firm in 1998. It came as a complete surprise but once she had got over the initial shock she fought back. "Their first offer [of a redundancy settlement] wasn't acceptable so I got an external lawyer to negotiate on my behalf," she says. "They were very generous in the end."Although she was happy in her career, the money gave her the opportunity to do something different. She bought two flats in a Victorian house in Portsmouth in January 2000, which she rents out.

She now has seven flats and plans to buy two more before the end of the year. "I have just had a baby so this is perfect for me because it means I can work on the business one-and-a- half days a week from home," she says.It may be worth trying to negotiate your redundancy package. Statutory redundancy is limited but companies can be more generous. It is not unheard of for a publishing company to pay employees a month's salary for each year worked, plus three months' notice pay.

Other sectors, such as manufacturing, are not so enlightened, paying the minimum of one week's salary for each year worked and only the minimum notice period."If there are mass redundancies, chances are you won't be able to negotiate your pay-off," says Donna Bradshaw, director at independent financial adviser Fiona Price & Partners. "If you are relatively senior you are more able to negotiate. Those who are over 50, say, may get some additional money to boost their pensions. This works out better for both employer and employee because it reduces tax implications."If you are made redundant and aren't sure about your next step, temporary work may be a stop-gap solution.