Anonymous
Hi, I joined a new company 6 months before and now I am asking for reimbursement of the buyout amount which was deducted by my earlier employer. So what amount present employer will paid FNF amount or 1 month's gross salary.
From India, New Delhi
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Madhu.T.K
Industrial Relations And Labour Laws
Saswatabanerjee
Partner - Risk Management
HROne
Content Marketing Strategist

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saswatabanerjee
2320

Hi Did you negotiate a buyout reimbursement when joining? please provide all the details so that members can give th proper suggestion
From India, Mumbai
sambhav-jain1
Hi
Total 90 days of notice period it decided that 30 days I would served,30 days it would adjusted by leave and next 30 days will pay by current employer. Now they are paying only for shortfall period while we discussed for 30 days salary. Please guide is this right what they are doing???

From India, New Delhi
Madhu.T.K
3769

Buy Out is purely an arrangement between you and the employer. During the course of negotiation and before accepting the offer, you should reach a consensus regarding how much should be paid. The present employer should have thought that you expect an amount equal to basic pay. In fact the amount that the present employer should pay you should be equal to the amount that you paid to the previous employer by way of notice pay. Anyway, in this arrangement the employee should not make any advantage.
From India, Kannur
saswatabanerjee
2320

Again you have chosen not to give the full details but give a cryptic post.

However, why do you think they should pay the entire 90 days amount when in reality you have paid only 30 days to the previous employer? Are you trying to make a profit from it?

From India, Mumbai
sambhav-jain1
Hi,
I am asking only for 30 days as we discussed during negotiation. But they are paying me only 23.5 days which was shortfall after adjusting 34.5 days leave out of 58 days.
Total shortfall period -58 days
No days served -32 days
leave balance -34.5 days
Notice period shortfall after leave adjust - 23.5 days
What am I asking wrong from my employer?

From India, New Delhi
Madhu.T.K
3769

What is the amount you paid by way of notice period? That amount, exactly that amount shall be asked from the present employer.

remember that negotiating for 6 days salary/ notice period payment, that also at a time when you have just joined the company, will ultimately mark you as problem creator in the confidential file. You don't know whether the culture of the company will match your expectations about the company. Of course, you can't say if the company's expectations about you would match the skills that you put in. very simply, you have not overcome the risk of your decision to quite the old company and join the new company. At this moment negotiating on a few days' amounts may create a negative picture.

From India, Kannur
saswatabanerjee
2320

The concept of notice period buyout is that by joining the new company early, the employee does not go out of pocket in settling the number of days of notice period not paid. So if you paid 23 days and the employer is paying you back that amount, it seems to be correct. You are not supposed to make a profit from the notice period buyout
From India, Mumbai
HROne
13

A buyout is a one-time payment made to an employee when they leave the company. Buyouts are typically agreed upon before an employee resigns, and are used to prevent the employee from working for a competitor for a set period of time.

When drafting a buyout agreement, there are three main clauses to consider:
1) the amount of money that will be paid,
2) who will be responsible for paying it, and
3) when the payments will be made.

So, as per the terms and conditions agreed, your buyout must be paid by your employer accordingly.

From India, Noida
saswatabanerjee
2320

Good point raised by HROne. Did you have an agreement? Anything in writing? What exactly did it say?
From India, Mumbai

If you are knowledgeable about any fact, resource or experience related to this topic - please add your views.








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