Can I Buy Out My Notice Period If My Employer Insists on the Full Term? Seeking Advice

Recently, due to personal reasons, I have resigned from my job. In my resignation letter, I mentioned that I am ready to serve 2 months of the notice period out of the actual 3 months as per the company policy. However, management accepted my resignation after 20 days and is insisting that I serve the complete 3-month notice period as they haven't found a suitable reliever.

Notice Period Clause

As my offer letter states: "After confirmation, termination of employment by either party will require giving three months' notice in writing to the other or salary in lieu thereof."

Query on Notice Period Buyout

In my case, I was ready to serve a 2-month notice period. For the remaining 1 month, can I buy it out (should I pay my basic salary or gross salary) and be relieved on the 60th day of my notice period with mutual agreement? If the employer (company) objects, how can I overcome this?

Please advise.

Lieu Notice Scenarios

There can be two scenarios regarding lieu notice:

1. If the employee wants to leave the company without serving the notice period according to the company policy, the employee can pay their equivalent salary to the company.

2. In the other instance, if the company wants to terminate the employee without serving the notice period, the company can pay the equivalent salary to the employee.

In your case, if the company agrees to consider one month's salary as a lieu account, you are eligible to skip the one-month notice period. However, if the company insists on replacement training or handover training, you do not have the option to wait or escalate to a higher level.

Hi,

Firstly, I thank you for sharing your knowledge.

I have a small doubt regarding the same situation: if the situation mentioned above occurs during the probation period and the employee resigns for some reason, should they be required to pay the employer?

Dear colleague, the issue hinges on the clause in your appointment letter relating to the obligations of either party when resigning or terminating services. Either party has to give 3 months' notice or 3 months' salary in lieu thereof when ending the service.

In your case, you can be considered to have fulfilled your obligation if you serve for 2 months and give one month's salary in lieu of notice, and the employer has to accept it. This action of yours is legal, and you can quit the job after serving for 2 months and paying one month's salary to the company.

Regards, Vinayak Nagarkar HR Consultant

I am facing a similar issue in my organization. There is no mention of "employer discretion" anywhere in the contract. What are the steps that I can take, and can the company legally withhold my relieving letter?