When employee resigned from his Job then as per policy he or she has to serve Notice day, generally this notice period may be 15 days to 90 days as per the employee designation and his work profile.
But sometime employee can not wait for such long time because of any reason in this situation the Notice Period Buyout option comes.
Meaning of Notice Period Buyout
If employee want to leave the job early and company is also ready to leave the employee so in this situation employee pay the balance day salary to the company.
After paying the Balance day salary to company employee can leave the organisation.
So this amount is called Notice Period Buyout.
Lets take on example just assume your Salary is 30000 pm, and as per the appointment letter the notice period days to serve is 60 days once employee put the resignation. Now let assume that your next employer is asking you to join as soon as possible let assume in 20 days.
So as per the Appointment letter out of 60 days 20 days employee is serving. so balance 40 Days employee has to pay which comes around 40000.
Who pay the Notice Period Buyout
1.Paid by employee – In this case employee pay the amount to company and leave the company.
2.Notice period paid by Employer – In this case the next employer is ready to pay the amount to the current employer so that employee can join early.
Does All company do Notice Period Buyout
This vary from company to company and also it all about the company call. in some company they directly say No to release early and if any one is leaving the organisation without serving the notice period then company consider them abscond.
Is it Legal
Notice period is 100 percent legal because company is ready to receive the amount, it is mutual consent.
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