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72% of Indian professionals who experienced or witnessed layoffs were informed on the same day or the day before, despite labor laws requiring at least one month’s notice for most employees and three months for large enterprises, according to a new survey by Blind, the anonymous community app for verified professionals. The findings, based on responses from 1,396 professionals between October 29 and November 5, point to widespread abuse of legal loopholes by global tech firms operating in the country.
For most affected employees, the layoff process lacked both legal compliance and humane communication. 72% were informed within just two days of their last working day. The rate was especially high at Amazon, Target and Freshworks, exceeding 90%. Only 18% said they received any advance notice (one to three months) as mandated by law.
Many multinational companies (MNCs) operating in India’s tech and service sectors have long taken advantage of a gap in the country’s labor framework that excludes IT and managerial staff from the “workmen” category. This allows them to legally bypass mandatory notice periods and government approval under the Industrial Disputes Act (IDA), leaving tens of millions of white-collar professionals outside the scope of labor protections.
Beyond the legal gaps, the way layoffs are executed is often dehumanizing and one-sided. 37% were informed via Zoom or Teams calls, 23% received impersonal email notifications, and 13% discovered they had been terminated only after their system access was suddenly cut off.
Even when sudden layoffs technically breach the spirit of the law, companies frequently use “in lieu of notice” payments to avoid penalties — paying a short-term severance instead of giving advance warning. This loophole enables overnight, American-style layoffs that would otherwise be illegal under Indian labor standards.
On Blind, several affected professionals shared how these practices are eroding trust and mental security within India’s tech scene. “It’s a cruel psychological game: keep people anxious, hoping some will quit voluntarily, saving the company money on severance,” wrote an employee from Amazon India. Another user from Samsung pointed to shared resilience, saying, “All I can think of is to become proficient to do something on our own. It could be small, but that ability gives some sense of security.”
For most affected employees, the layoff process lacked both legal compliance and humane communication. 72% were informed within just two days of their last working day. The rate was especially high at Amazon, Target and Freshworks, exceeding 90%. Only 18% said they received any advance notice (one to three months) as mandated by law.
Many multinational companies (MNCs) operating in India’s tech and service sectors have long taken advantage of a gap in the country’s labor framework that excludes IT and managerial staff from the “workmen” category. This allows them to legally bypass mandatory notice periods and government approval under the Industrial Disputes Act (IDA), leaving tens of millions of white-collar professionals outside the scope of labor protections.
Beyond the legal gaps, the way layoffs are executed is often dehumanizing and one-sided. 37% were informed via Zoom or Teams calls, 23% received impersonal email notifications, and 13% discovered they had been terminated only after their system access was suddenly cut off.
Even when sudden layoffs technically breach the spirit of the law, companies frequently use “in lieu of notice” payments to avoid penalties — paying a short-term severance instead of giving advance warning. This loophole enables overnight, American-style layoffs that would otherwise be illegal under Indian labor standards.
On Blind, several affected professionals shared how these practices are eroding trust and mental security within India’s tech scene. “It’s a cruel psychological game: keep people anxious, hoping some will quit voluntarily, saving the company money on severance,” wrote an employee from Amazon India. Another user from Samsung pointed to shared resilience, saying, “All I can think of is to become proficient to do something on our own. It could be small, but that ability gives some sense of security.”