Notice Period Buyout: Can Employers Refuse When Employees Want to Leave Early?

If an employee has a 90-day notice period and wants to buy out 60 days, can the employer deny the buyout?

Leave is not a right for employees not coming under the purview of the ID Act. However, if your employer is okay with that arrangement, they can permit you to be relieved in 30 days by adjusting your 60 days' leave against the notice period.

The employer has the discretion to accept or deny the buy-out option in full or partially. I suggest approaching the employer with your offer.

Hi, it depends on the roles and responsibilities of the resigned employee and the availability of a replacement. If the roles and responsibilities are crucial for the operations of the organization, then obviously the employer will deny salary in lieu of the notice period.

Dear Kavya, The applicable labor codes usually prescribe a notice period of 30 days. The purpose of the notice period is to ensure that there is no abrupt discontinuity of an assigned role or job in the organization, thus avoiding a negative impact on the business. There is no way that the employer can force any employee to serve the full notice period. Therefore, it would be better if you handle it smoothly. I think 60 days is enough; therefore, you can allow them to buy the rest. The choice is yours.