What to Do After a Tech Layoff in India 2026

Actions with outsized consequences: (1) Read every document before signing. You have 3-7 days: do not sign the separation agreement on the same day. Non-disparagement clauses and release of claims are negotiable. (2) Clarify your last working day in writing. (3) Ask about health insurance: group coverage typically ends on your last working day. (4) Back up personal data (contact list, appraisal letters, offer letters) before account access is revoked. Do not take confidential business data. (5) Contact HR to clarify severance, ESOP vesting, and accrued leave encashment. Get all confirmations in writing.

Entitlements under Indian labour law: Gratuity: if you have completed 5+ years of continuous service, you are entitled to 15 days salary per year of service (capped at Rs 20 lakhs). Cannot be withheld. Notice period or pay in lieu: typically 1-3 months per contract. Accrued leave encashment: unused PL/EL must be paid at your daily rate. F&F settlement: companies must complete Full and Final within 30-45 days of last working day in most states. ESOP vesting: vested options do not expire on termination: the PTEW in your plan document governs this. Most companies offer above-legal severance in exchange for signing a release of claims: this is a negotiation.

Strategy: (1) Update resume and LinkedIn immediately. Do not hide the layoff: gaps are visible and better explained proactively. (2) Activate your network before applying. Message 30 professional contacts: 40-50% of mid-level tech hires in India come through referrals. (3) Be transparent with HR: The company went through a restructuring that eliminated my role. I have been preparing actively since then. Mass layoffs are well understood: do not apologise. (4) Structured schedule: 4 hours interview prep, 2 hours applications, 1 hour networking daily. (5) Consider interim consulting or freelancing to maintain income and fill the resume gap.

Calculate your runway: severance + savings minus monthly fixed expenses. 3-6 months is comfortable; under 2 months creates pressure that affects interview performance. Tax: F&F and severance are taxable income. Gratuity up to Rs 20 lakhs is exempt. EPF: do not withdraw for short unemployment if you have other savings: the tax-free compounding is valuable. Transfer to your next employer's trust instead. Mental health: physical routine (exercise, consistent sleep) is the most effective tool for maintaining cognitive performance during a job search.