Recruitment · Updated September 2026
A notice period is the length of time an employee must keep working after resigning, or an employer must give before terminating, before employment officially ends. In India it’s set by the individual appointment letter rather than one uniform national law, subject to any applicable state Shops and Establishments Act minimum.
Duration commonly scales with seniority: around 30 days is typical at entry level, 30 to 60 days at mid-level, and up to 90 days for senior or management roles, though exact terms are contract-specific and vary meaningfully by company and sector. A notice period buyout lets an employee exit early by paying the current employer in lieu of the unserved days, commonly calculated as monthly salary divided by 30, multiplied by the remaining notice days. An employee earning ₹90,000 a month with 30 unserved days out of a 60-day notice period, common for a role confirmed after probation, would pay roughly (₹90,000 ÷ 30) × 30 = ₹90,000 to buy out the remainder. Whether the calculation uses gross or basic salary depends on how the individual appointment letter defines it. The new employer often reimburses this amount, sometimes as part of the joining terms, and that reimbursement is typically treated as taxable salary income when it happens.
The employee typically pays it to the current employer, often deducted from the final settlement, and the new employer frequently reimburses some or all of it separately.
No. Probation is an initial evaluation phase; notice period governs exit timing and often has separate, shorter terms during probation than after confirmation.
Yes, at their discretion, sometimes in exchange for the buyout amount, sometimes without one if the employer doesn’t need the remaining time served.
Calculate exact figures with the Notice Period Calculator, and see how this feeds into full and final settlement.