Notice Period Dilemma: Can My Company Demand 2 Months' Salary for Early Exit?

Dear HRs,

I am currently working with the Indian subsidiary of a German MNC, where all the rules, regulations, and HR policies are based on the Indian law structure. My query is related to the notice period and settlement amount I am being asked for by my company. My notice period is 3 months, but I have requested to be released after 1 month of the notice period. There is no mention of the compensation amount/type that I need to pay if the 3 months' notice is not served, and my company is asking for 2 months of gross salary in lieu of the short notice period. Please let me know whether this is correct, or if I have a chance to stand against it.

Thank you all and await your valuable inputs.

Regards,
Sid.

It is better to pay off 2 months' gross salary for a short notice period, rather than standing against it. If the compensation part is not mentioned in the appointment letter or any rule book, they will force you to serve the full notice period of 3 months as per the clause. The choice is yours whether to have a smooth exit or stand against it and have a troublesome exit.