What is Notice Period Buyout?
A notice period buyout is when you pay the employer, or the employer agrees to deduct from final pay, salary for part or all of the notice you are not serving, so you can leave earlier. It depends on your contract and the employer's agreement. Deductions from wages must fit those the Code on Wages authorises.
Example
Your notice is 60 days and you leave after 30. The employer asks you to pay for the 30 days not served, using a rate stated in your contract. Get the amount and the clause in writing before agreeing.
Calculator
Try the notice period buyout calculator and read notice period in India.
Related terms and guides
Sources
- The Code on Wages, 2019, https://www.labour.gov.in/static/uploads/2025/06/c328da14bbb15fc4ad571dc33e7a4ab3.pdf, live official page, linked for readers; link checked 2026-10-31
- Ministry of Labour and Employment, Compliance Handbook for Employers under the Four Labour Codes, https://www.labour.gov.in/static/uploads/2026/02/83978455025732b99b0165def80ab171.pdf, live official page, linked for readers; link checked 2026-10-31
This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.