Understanding My 3-Month Notice Period: What Are the Financial Implications?

Hi,

I need some help with my employment contract. In the notice period section, it states a 3-month notice period or the equivalent of salary and fixed allowances, if any. Could you please explain the following:

1. Is it the full amount of the gross salary per month or only the basic salary?
2. If I give just one month's notice to the company, do I have to pay for the deficit notice period?
3. If another company is interested in hiring me, will there be any financial implications for me?

Thank you.

Hello Cite'r,

It is a good blog to ask these relevant questions. Being from the H.R. fraternity, it is a great place to share and brainstorm a lot of H.R. aspects and new trends.

1. Your basic salary for three months, but I guess it's good to serve a month's notice to maintain healthy relationships.
2. The other company wants you to buy out. You could give them an option of making the check to your current organization post checking the amount with the Full and Final Department.
3. This will help your smooth transitioning to another organization. Good luck for your new assignment.

Regards,
Milan Thakkar

Many thanks to you, Milan, for your valuable response. I guess it will be better to serve the one month's notice and leave the company on good terms.

1. Whether is it the full amount of gross salary per month or only the basic salary?

That only your company can answer; some take the full gross, some may take basic...

2. Also, if I just give one month's notice to the company, then do I have to pay for the deficit notice period?

That also only your company can answer; some require 1 month notice with 2 months' pay, some need 0 months' notice with 3 months' pay, and some demand a 3-month notice without accepting payment for early relief.

3. If the other company wants to buy me out, will it have any financial implications on me?

It depends on whether your company accepts payment for early relief...

The reason I mention this is that in our company, we recruited a person from another company. Even though our company was willing to pay the notice period money of the other employee, the other company had a policy where they don't release employees before three months and do not accept payment either.

So, the answer lies in your question, and there's no harm in asking your company's HR if you have decided to quit.

Oops, I did not read your post carefully. You have just received the contract; it's better not to think of resigning at such an early stage. 😉😉😉 Next time, when you get an opportunity, think and make decisions. For the time being, you can have the information that the relieving policies depend on company to company.

Here's the corrected text with proper spelling, grammar, and paragraph formatting:

Here's the simple way out: ask the new company if they are comfortable with you joining them after 3 months. If not, look for another company. I'm not sure if it's valuable for you to bear the financial burden of this transition.

Hi, I am working in an IT company. When I joined, the notice period was 1 month. Now, the company has changed the notice period to 3 months, and they have not provided any alternative solutions (such as a buyout option). I am willing to buy out, but the company insists that I serve the full 3-month notice period.

Please provide me with a solution as soon as possible.

If any organization has more than 150 workers, please inform me.

Notice period applicable is one month or two months.

In the appointment letter, only a one-month notice is mentioned; no other compensation is mentioned for termination.