Notice Period Buyout Calculator
Calculate buyout amount for unserved notice days and generate a professional resignation letter with early relieving request.
Notice Details
Buyout is typically calculated on basic pay.
Results
Enter your notice details, then click Calculate.
📄 Generate Resignation Letter
Deep Dive: Notice Period Laws in India
1. Is a 90-Day Notice Period Legal?
Yes. Indian labor laws generally do not prescribe a maximum cap on notice periods for private sector employees, except for certain operational categories under the Industrial Disputes Act (which mandates 30 to 90 days). If you signed a contract agreeing to 90 days, it is legally binding.
State Shops & Establishments Act: Most states require a minimum of 30 days' notice for termination by the employer, but remain silent on employee resignation limits.
2. The "Buyout" Nuance
A "Buyout" is not a statutory right. It is a contractual negotiation. An employer can legally refuse your offer to pay for the unserved notice period and insist you serve the full duration to ensure a proper handover.
- Calculated on Basic: Courts have generally interpreted that notice pay should be calculated on Basic Salary + DA, not the Gross CTC, unless the contract explicitly states otherwise.
3. Adjusting Earned Leaves
Can you use your pending Privilege Leaves (PL/Earned Leaves) to reduce your notice period? Only with employer consent. While you have a right to encash them at full-and-final settlement, you cannot unilaterally declare you are taking leave to shorten your notice.
Smooth Exit Checklist
Read Your Contract
Check the termination clause. Look for the specific words "Basic Salary" or "Gross Salary" regarding buyout calculations.
Request in Writing
Always negotiate a buyout via official email. Verbal agreements have no standing during the Full and Final (F&F) settlement.
Clear Dues
Ensure any relocation bonuses or joining bonuses with "clawback" clauses are accounted for in your financial planning before resigning.