What to Do After Getting Laid Off in India

A layoff lands in one of two ways: either you saw it coming and it is almost a relief, or it arrives as a complete surprise and the next 72 hours are a blur. Either way, the decisions you make in the first two weeks have an outsized effect on what comes next — financially and professionally. This guide is the practical playbook.

The first 48 hours

Before anything else, sort the immediate logistics:

1. Read your severance letter carefully. Do not sign anything on day one. Most companies give you 7–30 days to accept the severance agreement. Use that time.
2. Screenshot and save your work. Anything you are entitled to keep — performance reviews, offer letters, payslips, communications about your role. Access disappears fast after termination.
3. Note your last working day vs your last paid day. These are not always the same. Garden leave, notice period buy-outs, and severance are separate things.
4. Ask HR three things in writing: final settlement breakdown, ESOP/RSU vesting cliff or acceleration, and health insurance end date.

Your legal rights when laid off in India

Most Indian tech and services employees are on contracts governed by the Industrial Disputes Act or the Shops and Establishments Act (state-specific). What the law actually says:

• Notice period or pay in lieu. Your contract specifies how many days of notice the company must give (typically 30–90 days). If they skip the notice period, you are entitled to pay in lieu — that money is owed, not optional.
• Gratuity. If you have completed 5 or more years of continuous service, you are entitled to gratuity under the Payment of Gratuity Act — 15 days of last drawn salary per year of service.
• PF and EPF. Your Employee Provident Fund is yours regardless of tenure. You can withdraw it after 2 months of unemployment or transfer it to a new employer.
• ESOP and RSUs. Vested options are usually exercisable post-termination (check your grant agreement for the exercise window — typically 30–90 days). Unvested grants are forfeited unless your agreement includes acceleration clauses.
• Retrenchment compensation. For companies with 100+ employees governed by the ID Act, retrenchment requires government approval and compensation. Most tech companies circumvent this via "separation agreements" — which is why reading what you sign matters.

Sort your money before the panic sets in

The week after a layoff is a bad time to make big financial decisions but a good time to build a clear picture. Do this within 7 days:

• Calculate your actual runway. Severance + savings ÷ monthly spend = months of cushion. Most people in India have 2–6 months. That number drives every other decision.
• Pause all non-essential auto-payments. Streaming, gym, subscriptions. Cancel or pause — most will let you pause without penalty. This alone frees Rs 2,000–8,000/month for most households.
• Do not withdraw your EPF immediately. If you will be employed again within 2–3 months, leave it invested. Early withdrawal triggers tax if you have not completed 5 years.
• Continue health insurance. Your employer policy ends. Bridge with an individual policy immediately — do not let coverage lapse. A one-month gap can create pre-existing condition problems.
• Talk to a [financial advisor](/find/financial-advisor) if you have significant investments, a home loan, or RSU income — the tax implications of a layoff year are non-trivial.

How long your runway is actually likely to last

Median job search after a tech/services layoff in India: 6–14 weeks for mid-level roles, 12–24 weeks for senior/specialist roles. The range is wide because referrals compress it dramatically — a referred candidate typically receives an offer 4–6 weeks faster than someone applying cold.

Practical implication: if your runway is 4 months and the average search is 14 weeks, you have a reasonable buffer. If your runway is 6 weeks, you need to think about income — freelancing, consulting, or a stop-gap — from week one.

Job search — what actually works

High-ROI activities

• Referrals first. Reach out to former colleagues who are now at companies you want to join. A 20-minute coffee call is more effective than 50 cold applications.
• Targeted applications. 5 well-researched applications per week beats 50 generic ones. Customise the first three paragraphs of your cover letter to the specific role.
• LinkedIn headline and availability signal. Update to "#OpenToWork" (visible to recruiters only) and update your summary. Recruiters actively source from LinkedIn.
• Talk to [a career coach](/find/career-coach) for interview prep. Mock interviews with a human who has hired in your industry are worth 3x more than generic advice. One or two sessions in the first two weeks pays for itself.

Low-ROI activities to limit

• Applying to 30+ jobs per day cold — burns time and creates false momentum.
• Spending 3+ hours daily on job boards without referral conversations.
• Waiting for your portfolio or resume to be "perfect" before sending.

Negotiating the severance offer

The first severance number is usually not the final number. Companies have a range and expect negotiation — especially for senior employees. What is usually negotiable:

• Severance quantum. Especially if you were close to a vesting cliff or had a large unvested grant.
• ESOP exercise window extension. Standard is 30–90 days. You can ask for 6–12 months, especially if options are underwater.
• Reference letter wording. Get a specific, positive letter, not a form confirmation of employment dates.
• Non-disparagement scope. Check what you are agreeing not to say — some clauses are unusually broad.
• Garden leave vs. termination date. Staying on payroll for an extra 30 days extends your insurance and can push you over a gratuity or vesting threshold.

The mental health part nobody says out loud

Identity and job are more entangled in India than people admit — especially for those who moved cities for work, or whose family contributed to their education expecting a stable career path. A layoff triggers grief in the clinical sense: denial, anger, bargaining. That is not weakness; it is accurate.

Three things that help:

• Structure your days. Jobless days without structure spiral faster than people expect.
• Tell one person the full truth of how you feel — not your LinkedIn network, a real friend.
• If two weeks in you are still unable to function, talk to a therapist. Adjustment disorder after job loss is real and very treatable.