Notice Period Waiver Letter Format and Sample

A notice period waiver letter records the company's decision to let an employee leave without serving all or part of the notice period in the appointment letter. It states how many days are waived, the new last working day and, most importantly, whether the waived days will be recovered from the final settlement or not. Without this letter, a manager's verbal yes to an early exit often turns into a deduction in the settlement, and a dispute.

When to use it: Issue it after the reporting manager confirms that the handover can be completed by the earlier date and the HR head approves the financial treatment. It may follow the employee's request for early release or the company's own decision to relieve the employee sooner. It is signed by an authorised signatory and countersigned by the employee.

Notice period waiver letter template

Copy the text below and replace everything in square brackets with your company details.

[Company Name]
[Office Address]
[City], [State] [PIN Code]

Date: [Date]
Ref: [Company Code]/HR/NPW/[Year]/[Number]

To
[Employee Name]
[Designation], [Department]
Employee ID: [Employee ID]

Subject: Waiver of notice period

Dear [Employee Name],

This refers to your resignation dated [Resignation Date] and [your request dated Request Date for early release / the discussion with Manager Name on Date]. Under your appointment letter, your notice period is [Number] days, and your last working day would have been [Original Last Working Day].

The company has decided to waive [the entire notice period / Number days of your notice period]. Your last working day will therefore be [New Last Working Day], and you will be relieved from duty at the close of working hours on that date.

[Choose one: No amount will be recovered from you for the waived period. / The waived period of Number days will be adjusted against your earned leave balance, which will reduce from Number to Number days. / Wages for the waived period of Number days, amounting to ₹Amount, will be recovered from your full and final settlement, as you agreed in your request.] [If the company waived the notice on its own decision, add: You will be paid wages for the waived period of Number days as part of your settlement.]

Please complete the handover to [Handover Person Name] and return all company property before [New Last Working Day]. Your wages up to that date will be paid within two working days of it, and the rest of your settlement will follow as per company policy, with the relieving and experience letters issued after exit clearance.

All other obligations under your appointment letter, including confidentiality, continue to apply after your exit.

Yours sincerely,
For [Company Name]

[Signatory Name]
[Signatory Designation]

Acceptance by employee

I accept the waiver of notice and the terms stated above, and note my last working day as [New Last Working Day].

Name: [Employee Name]
Signature: ____________
Date: ____________

What to include

Days waived and new last day

State the original notice, the number of days waived and the new last working day. These three figures drive the final month's wages, leave and the relieving letter.

The money question in writing

Say plainly whether waived days are free, adjusted against leave or recovered. This is the single line most often missing, and the one that causes disputes in the settlement.

Company-initiated waivers

When the company asks the employee to leave before the notice ends, the employee has not chosen to shorten it. Paying wages for the waived period is the fair and usual approach, and the letter should say so.

Handover still matters

Even with notice waived, name who takes over the work and ask for company property to be returned before the new last day.

Employee's signed acceptance

The employee's signature on the terms, especially any recovery, is the written consent HR needs before deducting anything from the final settlement.

Common mistakes to avoid

Agreeing to an early exit verbally and then deducting notice pay in the settlement.
Leaving out whether the waived period will be recovered or not.
Recovering notice pay when the company itself asked the employee to leave early.
Forgetting to update the last working day in HR and payroll records.
Issuing the relieving letter with the original, not the revised, last working day.

Run it in ZeniaHR

Update the last working day on the resignation recorded in ZeniaHR, so the employee's on-notice status, the exit checklist in offboarding and payroll all use the new date. Direct Payroll counts the final month's paid days only up to the exit date. If leave is adjusted, the leave ledger records it; if notice pay is recovered, HR adds it as a deduction payroll input in the settlement run. Keep the signed waiver in the employee's documents.

Employee records and exits Payroll Leave management

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Frequently asked questions

What is a notice period waiver?

A notice period waiver is the employer's written agreement to let an employee leave without serving all or part of the notice period in the appointment letter. The waiver letter states the days waived, the new last working day and whether the waived period will be recovered, adjusted against leave or left free.

Is notice pay deducted when the notice period is waived?

Only if the letter says so and the employee has agreed. Many companies waive the shortfall without recovery when the handover is complete. Others adjust earned leave or recover wages for the waived days. The treatment must be written in the waiver letter before the settlement is calculated.

Can an employer waive the notice period without the employee asking?

Yes, an employer may choose to relieve an employee before the notice ends. In that case the employee has not asked to leave early, so companies normally pay wages for the waived period. The letter should state this so the settlement reflects it.