Your severance negotiation guide — what Indian employees actually have the right to ask for.

Severance in India is part statute, part policy, and part negotiation. Most people only ever see the third part after they have already signed away the first two.

What the law gives you

Notice pay as per your employment contract, encashment of accrued leave, gratuity after five years of continuous service under the Payment of Gratuity Act, and your provident fund balance. None of these are favours.

What company policy usually gives you

Retrenchment compensation, a severance multiple tied to tenure, and sometimes extended insurance cover. These vary widely and are almost never presented as negotiable.

The first offer is a starting position, not a verdict.

What you can reasonably ask for

• Extension of group medical cover by three to six months
• Conversion of the notice period into garden leave so you can interview while employed
• A written, positive relieving letter and an agreed reference line
• Waiver of any pro-rated joining bonus or training bond clawback
• Payout of the pro-rated annual bonus you have already earned

How to ask

Put the request in a short, unemotional email. Name the specific clauses. Give a reason grounded in the company's own policy rather than personal hardship. Ask for a response by a specific date.

Before you sign anything

Read the release clause. If it contains a non-disparagement or non-compete term that is broader than your role, ask for it to be narrowed. Once signed, it is very difficult to reopen.