Former Uber Engineer’s Layoff Experience Sparks Debate Over Severance & Employee Protection

A former senior engineer Lakshit Farswan at Uber has reignited discussions around layoffs, severance taxation and employee protections after sharing his personal experience of losing his job while on paternity leave.

The engineer, expressed his grievance on the professional networking and workplace discussion platform LinkedIn, and said that he had paid around ₹92 lakh in taxes during the last financial year, when his income was at its peak. Despite the significant tax contribution, he said he was laid off this year while on four months of paternity leave.

The timing of the job loss has added another layer of difficulty, as he has to take responsibility of his newborn and unable to devote the same amount of time and attention to preparing for interviews or searching for another role during this crucial time.
Concerns Over Severance Taxation
The former Uber employee also raised concerns about the taxation of severance payments. According to him, severance can serve as a critical financial cushion for employees who suddenly find themselves without an income, particularly when they have family responsibilities.
Also, he questioned whether such payments should be taxed in the same manner as regular income, arguing that employees often rely on severance to manage expenses during the transition between jobs.
His experience has also led him to call for stronger labour protections for highly compensated professionals who can face sudden employment disruptions despite having made substantial contributions to the government through income taxes.
Calls for Tax Relief on Severance
The discussion attracted responses from other technology professionals, suggesting that if governments cannot prevent companies from carrying out layoffs, they could consider providing employees with greater financial relief during periods of unemployment.
The engineer also proposed exploring tax exemptions on severance payments, arguing that such a measure could offer temporary financial support to workers navigating an unexpected job loss.
The conversation highlights a broader question facing India’s technology workforce: whether existing employment and taxation frameworks adequately support professionals during sudden career disruptions.
As layoffs continue to remain a concern across the technology industry, debates around severance, taxation, parental leave and employee protections are likely to gain further attention. The discussion also underscores the need to examine how workplace policies can balance business flexibility with financial security for employees facing unexpected job losses.