Can My Company Refuse My Notice Period Buyout and Make Me Work the Full 60 Days?

Hello all,

I gave my resignation today. My current company has a notice period of 60 days. I am willing to serve 1 month and pay a buyout for the remaining 30 days. The clause from my appointment letter is attached in the image. Please guide me on whether the management can refuse the notice period buyout and force me to work the full 60 days. Kindly review the clause in my appointment letter attached.

Hi Ram, it seems the management may be able to refuse a notice period buyout and can require you to work for 60 days to ensure a smooth transition.

The clause in the screenshot only indicates that recovery from the employee's basic salary would be executed in the event of a "shortfall" in the notice period. However, it does not confirm whether the shortfall in the notice period could result from an agreement between the employer and the employee.

A shortfall in the notice period can occur due to medical reasons or if an employee absconds during the notice period. Therefore, a notice period buyout may not be a guaranteed right here.

I submitted my resignation today. My company has a notice period of 60 days; however, I have asked to serve 30 days and I am willing to pay out the remaining 30 days.

My appointment letter states - on confirmation, the notice period would be 60 days from either side to ensure a smooth transition and handing/taking over. In case of a shortfall in the notice period, pay in lieu thereof shall be due and payable from either side. The notice period shall be recovered from the basic salary of the employee.

Since the clause itself discusses the procedure to be followed in the event of notice period shortfall, I believe it is akin to an agreement between the parties; otherwise, it shouldn't be included in the clause. Therefore, the employee is well within his rights to exercise his option of getting relieved early as per his convenience.

Regards, Manoj