Understanding the Buyout Option in Job Offers: What Does It Mean for Employment?

Gomathy Arunachalam
Hi,

I came across an email discussing a job opportunity in which the HR concerned has asked whether the Buy Out Option is applicable or not. What could it mean regarding employment? Kindly clarify.

Thanks in advance.
Shah Gaurang
A buyout option refers to whether your notice period can be bought out or not. Every employee is required to provide a specific notice period when resigning from employment. In situations where an employee is transitioning to a new company and the new employer requires immediate availability, they may opt to buy out the notice period by compensating the previous company with one month's salary of the employee. Some companies permit this practice, while others do not.

Regards,
Gaurang
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