Notice period policy template for India
Indian central rules as of 31 October 2026.
A notice period policy tells employees how much notice they must give when resigning, what happens if they leave sooner, and how handover and final dues work. In India the notice length is set by the employment contract and company policy, commonly 30, 60 or 90 days. Use the template below to write it clearly, apply it evenly, and keep it consistent with each appointment letter.
At a glance
- The notice period lives in the contract and policy. Align both.
- Say who may waive or shorten it, and how buyout is priced.
- Pay final dues on time. The Ministry's handbook states that when an employee leaves, due wages must be paid within two working days.
- Do not use the policy to hold back wages or documents the employee is entitled to.
Policy template (copy and paste)
NOTICE PERIOD POLICY
[Company legal name] Effective: [DD Month YYYY] Version: [x.x]
1. Purpose and scope
This policy applies to all employees of [Company] in India, except
those whose contract states a different notice period.
2. Notice period
(a) Confirmed employees: [30 / 60 / 90] days, written, by either side.
(b) During probation: [7 / 15 / 30] days by either side.
(c) Senior roles / critical roles: [as per appointment letter].
If this policy and the appointment letter differ, the appointment
letter applies.
3. How to resign
The employee sends a written resignation to the reporting manager
with a copy to HR. The notice starts on the date HR acknowledges
it in writing, normally within [2] working days.
4. Acceptance and last working day
HR confirms the last working day in writing. The last working day
is the date on which the notice period ends, unless shortened or
extended under clauses 5 to 7.
5. Early release
The company may release an employee early at its discretion.
Requests go to the manager and HR with the reason and handover plan.
6. Buyout
(a) An employee may request to leave before the end of the notice
period by paying [the pay for the shortfall days / amount fixed
in the appointment letter].
(b) The company decides whether to accept. Approval is in writing.
(c) The amount may be adjusted against final dues, as permitted by
law, with a written statement of the calculation.
(d) The company may also pay in lieu of notice if it ends the
employment.
7. Garden leave
The company may ask the employee not to attend work during all or
part of the notice period while continuing to pay wages. Duties
of confidentiality continue.
8. Leave during notice
Leave during the notice period is [permitted with approval / not
permitted] and [does / does not] extend the notice period.
9. Handover
The employee completes a handover checklist: pending work, access,
documents, assets and knowledge transfer, signed by the manager.
10. Exit formalities
Return of assets, clearance from IT, finance and admin, and an
exit interview with HR.
11. Final settlement
Final dues (wages, leave encashment where applicable, bonus and
gratuity where eligible, less lawful deductions) are processed
within [the timelines required by law]. A settlement statement is
shared. The relieving letter and experience letter are issued
after clearance, within [x] working days.
12. Exceptions
Misconduct cases are handled under the disciplinary policy.
Statutory rights of the employee are not reduced by this policy.
13. Review
HR reviews this policy yearly.Design choices to make before you publish
| Choice | Options | Practical point |
|---|---|---|
| Length by level | One period, or varied by grade | Longer notice for roles that are hard to backfill; keep each tier in the appointment letter |
| Probation | Shorter notice | Write it explicitly |
| Buyout price | Pay for shortfall days, fixed amount, or case by case | A formula is easier to defend than discretion |
| Employer-initiated end | Notice or pay in lieu | Mirror the employee side where possible |
| Recovery from dues | Allowed or not | Only as lawful and with a written statement |
See the candidate view in notice period buyout explained and the notice period guide.
Final dues and documents
The Ministry's handbook states that when an employee leaves an establishment, whether by resignation, dismissal or termination, the employer must pay all due wages within two working days. Gratuity timing and the rest of the settlement are covered in full and final settlement. Experience and relieving letters should not be withheld to force a notice-period dispute. Seek legal advice if a dispute arises.
Frequently asked questions
Is there a law fixing the notice period for resignation? Check your contract, policy and any applicable state or sector rule. Most private employees' resignation notice is set by contract.
Can we recover notice pay from final dues? Only as permitted by law and the contract. Share a written calculation. Ask counsel.
Can an employee leave without serving notice? They may negotiate early release or buyout. Without agreement, the contract's remedies may apply.
Should the policy be signed? Have employees acknowledge it at joining and when it changes.
Next step: match this policy to your appointment letter.
Sources
See front matter. Accessed 31 October 2026.
This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.