Invest severance package in debt funds, use SWP to create cash flows

Part of this money should also go into creating an emergency corpus equal to 12 months of expenses

Layoffs are making headlines every few days, both in India and abroad. Around 2 lakh workers have been laid off worldwide in the technology sector alone, according to a media report. Several Indian tech companies and start-ups have also cut jobs in 2023. More cuts may follow. Employees who receive a severance package must deploy it judiciously. 

Size depends on contract
 

Some corporates offer their employees a compensation at the time of separation. Sandeep Bajaj, managing partner, PSL Advocates & Solicitors, says, “It is not a matter of right but a matter of practice and is contractually determined.” Its size