Notice Period & Resignation Rules: Know Your Rights (2026)

"I resign effective immediately." Can you really say that? Or can your employer force you to stay for 90 days?

The notice period clause is one of the most contentious parts of any employment contract. In India, it is governed by the Contract Act and Shops & Establishments Act of your state.

1. Is a 90-Day Notice Period Legal?

Yes. If you signed an employment contract agreeing to a 3-month notice period, it is legally binding. Courts generally uphold reasonable notice periods (30-90 days) as necessary for business continuity.

2. Notice Period Buyout Option

This allows an employee to leave early by paying the salary for the unserved notice period.
However, it is not an automatic right. The employer usually has the discretion to accept or reject a buyout request depending on project criticality.

3. Can an Employer Reject Resignation?

No. An employer cannot force an employee to work against their will (that's bonded labor, which is illegal). They can only:

• Demand the notice period be served.
• Claim damages if you leave without notice.
• Mark you as "absconding" if you disappear.

4. Absconding: The Consequences

Leaving without notice is "absconding". The risks are:

• Legal notice for breach of contract and recovery of salary in lieu of notice.
• Blacklisting in background verification checks (Red flag for future employers).
• Withholding of Full & Final Settlement (F&F) and Experience Letter.

5. Full & Final Settlement (F&F) Timeline

Ideally, F&F should be cleared within 30-45 days of your last working day. This includes unpaid salary, encashment of leaves, and bonus.

Frequently Asked Questions (FAQ)