• Notice period buyout


I have resigned from my current organization. I am ready to pay the buyout amount but current employer is not ready for my notice period buyout. In the agreement that I have signed had the following clause:

"After a confirmation, either party may terminate the service by serving 60 days advance notice or by making a payment of 60 days basic salary as liquated damage. However, you shall inform the management 15 days in advance if you decide to exercise the option of making the payment instead of serving the notice period, so as to enable the management to make necessary administrative arrangements. In the event of your failure to do so, you shall necessarily serve the company for 60 days. No such notice in lieu of that shall be required if the management decides to terminate you on disciplinary grounds. "

So is it possible for me to buyout the notice period ? I'm already serving notice period, and have informed about the buyout to the management. Please reply
Asked 1 month ago in Labour

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7 Answers

You can make payment of salary in lieu of notice period of 60 days


2) give the management 15 days advance notice of your intention to pay the buy out amount 

Ajay Sethi
Advocate, Mumbai
85546 Answers
5730 Consultations

5.0 on 5.0

The agreement clearly states that you can get out of the company once you give a 15 day notice period and pay the requisite amount. They cannot refuse to take the money and let you go. In any case you can leave after 15 days.

Rahul Mishra
Advocate, Lucknow
13335 Answers
49 Consultations

5.0 on 5.0

You can send a legal notice and inform the same to the employer. He needs to give you relieving letter once you take the buyout option

Prashant Nayak
Advocate, Mumbai
25386 Answers
65 Consultations

4.4 on 5.0

If you wish to pay 60 days' pay and quit, you must serve your employer 15 days' notice, which is mandatory according to these terms of employment.

Swaminathan Neelakantan
Advocate, Coimbatore
1498 Answers
17 Consultations

4.9 on 5.0

Whether you have intimated your decision to buy the notice period which you intend not to serve invoking the clause mentioned by you, if so, do you have an acknowledgment for the resignation you have tendered?

Did the management give it in writing rejecting your resignation letter?

If yes, then you may resort to legal process by serving a legal notice in writing (not through email), stating that you have already tendered your resignation letter and was waiting for the relieving letter as well as the experience certificate besides settlement of F&F dues. You can demand the management all that are due to you in the same legal notice giving them one week's time subsequent to which you can approach labor court with a complaint agaisnt the management for this. 

Please note that the employee has to make payment for the notice period not served and this money is reimbursed by the new employer if he is joining somewhere

T Kalaiselvan
Advocate, Vellore
75676 Answers
1313 Consultations

5.0 on 5.0

- As per Specific Relief Act, if any employee quits before the notice period, the Employer can only recover the Notice pay, and the Company cannot force to serve the entire notice period.

- Further, the resignation decision is the employee’s decision, and the employer cannot sue for breach of contract, if the employee leaves without serving contractual notice. 

- Except, recovery of the said amount, company cannot harm you for the same

- Further, the employment bond with the negative covenant is valid and legally enforceable, if the parties agree with their free consent i.e. without force, coercion, undue influence, misrepresentation and mistake, but it is not enforceable, if it is either one sided, unconscionable or unreasonable.

- Further, section 27 of the Indian Contract Act prohibits any agreement in restraint of trade and profession.

- Since, you have already worked the notice period then legally you are not under the obligation to remain there and comply their direction , and you are free to joint other company.

Mohammed Shahzad
Advocate, Delhi
8791 Answers
94 Consultations

5.0 on 5.0

Dear client, 

as long as you have informed the management 15 days prior, you can do it. 

Thank you

Anik Miu
Advocate, Bangalore
3311 Answers
34 Consultations

4.9 on 5.0

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