Notice Period
Notice period is the length of time an employee or employer must give as advance intimation before terminating the employment relationship, allowing both parties time to transition smoothly (handover of work, recruitment/backfill, etc.). It is defined in the employment contract or company's HR policy, in line with applicable Shops & Establishments Act or Standing Orders.
Typical notice periods range from 15 days to 90 days depending on seniority and role, with senior/managerial roles often requiring longer notice. Employees who wish to leave early can usually 'buy out' the remaining notice period by paying the equivalent salary for the unserved days, subject to employer approval.
Key points
- ✓ Duration is defined in the employment contract, commonly 30-90 days
- ✓ Can apply to both employee resignation and employer-initiated termination
- ✓ Early exit is possible via notice period buyout (paying salary in lieu of notice)
- ✓ Non-compliance with notice period can result in salary deduction or legal recourse
- ✓ Notice pay recovered from an employee is factored into the F&F settlement
Example
An employee with a 60-day notice period who wants to leave after serving only 30 days can buy out the remaining 30 days by paying an amount equal to 30 days' salary, which is then adjusted in their full and final settlement.
Frequently asked questions
Can an employer waive the notice period?
Is notice period pay taxable?
Does notice period differ during probation?
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