5-point guide to help you survive current lay-off season - The reports of mass layoffs by several firms in various multi-national and Indian companies including IT, social media, Edu Tech firms and related sectors have created an atmosphere of uncertainty among lakhs of service class employees.

The current turbulence in the market could be cruel for those who are the sole breadwinner for the family as it becomes hard to manage funds and manage daily household needs without a regular income.

The gloomy market scenario is an unkind reminder to scramble for ways to survive this current wave of retrenchment. It's time that you manage finances to ensure enough funds in times of crisis.

Here's your quick 5-point guide to deal with any such situation in future

Legal recourse

Matters relating to layoffs and retrenchment in industrial establishments are governed by the provisions of the Industrial Disputes Act, 1947 (ID Act) which regulates various aspects of layoffs and conditions precedent to retrenchment of workmen.

As per the ID Act, establishments employing 100 persons or more are required to seek prior permission of the appropriate government before effecting closure, retrenchment or lay-off. Further, any retrenchment and lay-off are deemed to be illegal which is not carried out as per the provisions of ID Act. The ID Act also provides for the right of workmen laid off and retrenched for compensation and it also contains provision for re-employment of retrenched workmen.

Based on their respective jurisdictions as demarcated in the ID Act, Central and State Governments take actions to address the issues of the workmen and protect their interests as per the provision of the Act. The jurisdiction in the matters with regard to multi-national and Indian companies in the IT, social media, Edu Tech firms and related sectors lie with the respective state governments.

Emergency fund

You should be banking 5% of your income into a fixed deposits (FDs) account.  Then in time of an emergency you can take a loan against fixed deposits (FDs). Maintaining an emergency fund is always advisable for a smart investor. People are in a habit to spend lavishly when they see a regular source of income, however, in case this is discontinued, managing day-to-day expenses becomes a hard task.

Work out how much you owe, who to, and how much you need to pay each month. Identify your most urgent debts: rent or home loans, school fees and tax are called priority debts as there can be serious consequences if you do not pay them. An emergency helps you sail through this crisis.

It is said that there is no fixed rule on how much to save for an emergency. The needs and requirements of every person differ and no two situations are the same. So, there is no fixed rule to specify an exact amount for emergency funds but it is always advisable to maintain it.

Maintain monthly budget

Take stock of how much money is coming in, and importantly how much is going out. This way you can manage your monthly expenses and keep a close track of your savings. Develop a habit to start saving and investing money first for your future and the remaining amount should be utilised for your own and family's expenses. This will help you maintain financial discipline in life and make sure you don't overspend.   

Health insurance cover

An individual should not solely depend on the corporate health insurance cover given by the company. You should opt to buy one on your own for yourself and family so that it covers the crisis period and you don't remain unprotected.

Extra Income

See how you could boost your income rather than just depending on a single source of income.

Absolutely no one is aware when your company decides to give you the pink slip. Retrenchment is a top management level decision where only the HR chief is kept in loop and many times even your team leader gets to know the things at the last moment.

Early safe and respectable exit is advisable when you sense your company is planning for a lay off because when the news spreads in the market you may lose the bargaining power with your prospective employer.

Also Read | PPF account holders ALERT! Tips to maximise your PPF balance after 15 years maturity | Turn your monthly investment of Rs 12,500 into Rs 1.5 crore - PPF interest rate, calculator, details

Also Read | Post Office Monthly Income Scheme: Tips to maxmise your returns in 5 years | MIS interest rate 2022, calculator