How to read your termination letter — what to accept and what to push back on

Most people sign their termination paperwork within 24 hours of receiving it, while they are still in shock. That is exactly when you should not sign anything. Here is how to read the letter carefully and what you have the right to question.

The four things that matter most

Every termination letter should clearly state your last working day, your severance amount and how it will be paid, what happens to your notice period, and what benefits continue through the transition. If any of these are missing or vague, that is the first thing to address.

Last working day

This determines when your salary stops, when your PF exit is recorded, and when your health insurance lapses. Confirm the exact date in writing. Do not assume verbal confirmation is sufficient.

Notice period — waived, worked, or bought out

There are three scenarios. You work your full notice period and receive salary through it. Your notice period is waived and you leave immediately, in which case you should receive pay in lieu of notice. Or you buy out your notice period by paying the company, which some employers require before they issue a relieving letter.

If the company is asking you to leave immediately without paying you notice period salary, that is not standard and you can push back. Notice period pay in lieu is your right unless your contract specifically excludes it.

Severance — what is and is not negotiable

Indian law does not mandate severance beyond what is in your contract, unless the company has a retrenchment policy under the Industrial Disputes Act — which typically applies to workers, not salaried professionals. However, most companies offer severance as a goodwill gesture and to secure your signature on a full and final settlement.

The number they offer first is rarely their final number. If you have been with the company for several years, have a strong performance record, or are being let go as part of a group, you have more leverage than you think. A polite written response asking for reconsideration within 48 hours is entirely appropriate.

The non-disparagement clause

Most termination letters include a clause preventing you from speaking negatively about the company. This is standard. What is not standard is a clause that prevents you from disclosing that a layoff happened or that restricts your ability to discuss your own experience. Read this carefully.

The full and final settlement

This is a separate document from the termination letter. It lists every component of your final payout — salary, leave encashment, notice period pay, severance, and any deductions. Do not sign this until every number has been calculated and you have verified it independently. Ask for a breakup in writing before signing.

What you should always ask for in writing

Ask for a relieving letter and an experience letter. These are two different documents. A relieving letter confirms your last working day. An experience letter confirms your role, tenure, and that you left in good standing. Both are your right. Some companies delay these — follow up in writing and keep a record.

What you should not sign under pressure

Do not sign anything that says you have no further claims against the company until you have received your full and final settlement amount in your bank account. Signing before payment is received occasionally leads to disputes where the company delays or reduces payment after the paperwork is done.

Take 48 to 72 hours. Read everything. Ask questions in writing. You are allowed to do this.