How Notice Period works
If you leave before serving the full notice, the employer can recover pay for the shortfall days (notice-pay recovery), or you can buy out the notice. The recovery is usually based on your salary for the unserved days and is adjusted in the full-and-final settlement.
Why Notice Period matters
Notice-period rules affect how quickly you can switch jobs and how much you take home on exit, so they are worth checking before you resign.
Buying out or serving your notice
When you resign, you can either serve the full notice period or, if the employer agrees, buy it out by paying for the unserved days. Some new employers reimburse this buy-out to help you join sooner. If you leave without serving and without paying, the employer recovers notice-pay for the shortfall days from your full-and-final settlement, based on your salary for those days. Notice terms are set in your appointment letter and can differ during probation, so read the clause before you resign, and get any waiver or buy-out agreement in writing to avoid a dispute over your final dues.
Frequently asked questions
Can an employer force me to serve notice?
An employer can enforce the contractual notice or recover notice-pay for unserved days, but cannot usually compel physical attendance against your will.
Is notice-pay recovery taxable?
Notice-pay recovered from you reduces your taxable salary for that period, though treatment can vary, so check your Form 16.