Notice period in India: rules, buyout and how to get relieved on time
Your notice period comes from your appointment letter or company policy, not one national rule. Here is how to serve it, shorten it or buy it out, get your relieving letter, and when your final wages are due.
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Quick answer: In India your notice period is set by your appointment letter, your company's HR policy or its standing orders; there is no single national number. When you resign you can serve the full notice, ask for an early release, or "buy out" the days you don't serve by paying for them (some new employers will cover this). Get the acceptance of your resignation and your last working day in writing, complete a proper handover, and collect your relieving and experience letters. Under the Code on Wages, the wages due to you must be paid within two working days of your resignation taking effect.
Notice periods cause more stress for job changers in India than almost anything else. A new employer wants you in 30 days, your current one says 90, and nobody explains the options. This guide covers what the rules actually are, the choices you have and how to leave on good terms with every document you will need later.
Where your notice period comes from
- Your appointment letter or contract. This is the first place to look. It usually states the notice period, often different during probation and after confirmation, and how it can be settled.
- Your company's HR policy or handbook. Policies often add the details: whether leave can be adjusted, how buyouts are calculated and who can approve an early release.
- Standing orders, in larger establishments covered by them, set conditions of employment for workers, including how service ends.
Read all of these before you resign, not after. Since the labour codes took effect on 21 November 2025, every worker must receive an appointment letter, so if you joined recently you should have one. If you don't, ask HR for it in writing.
Your options when you resign
| Option | How it works | Good to know |
|---|---|---|
| Serve the full notice | You work until the last day of the notice period | The cleanest exit; plan your joining date around it |
| Early release | Your manager and HR agree to let you go before the notice period ends | Easier if your handover is ready and your work is covered |
| Notice buyout | You pay, or have deducted from your final dues, the salary for the days you don't serve | Your new employer may reimburse it; ask before you accept their offer |
| Leave adjustment | Earned leave you haven't taken is set off against the notice period | Only if your company's policy allows it |
| Garden leave | Your employer asks you not to come to work during the notice period but keeps paying you | You are still employed, so you can't join the new company yet |
How to resign the right way
- Get the new offer in writing first. Never resign on a verbal promise.
- Read your notice terms in the appointment letter and HR policy, and work out your last working day.
- Tell your manager first, in person or on a call, then send a short, polite resignation email the same day.
- Offer a handover plan: what you will finish, what you will document and who will take over.
- Get written confirmation of the acceptance and your last working day. If you agreed an early release or a buyout, the amount and the date should be in that email.
- Before you leave, collect your relieving letter, experience letter, final payslips and your full and final settlement statement, and return company property against a receipt.
- Keep your PF with you. Your UAN stays the same; give it to your new employer so your PF account continues.
Resignation email template
Dear [Manager's name],
I am writing to resign from my position as [role]. As per my notice period of [x] days, my last working day will be [date].
Thank you for the opportunities and support over the past [period]. I will make sure my work is handed over smoothly and will share a handover plan by [date].
[If needed: I would be grateful if an early release on [date] could be considered. I'm happy to discuss settling the remaining days as per policy.]
Regards,
[Your name]
Notice period buyout: how the maths works
Most appointment letters say the notice period can be settled by paying salary "in lieu of notice". The letter should say whether that means basic pay or gross pay.
Example: your notice period is 60 days, you can serve 30, and your basic pay is ₹30,000 a month. If the buyout is calculated on basic pay, 30 unserved days cost roughly ₹30,000. If it is on gross pay of ₹50,000 a month, the same 30 days cost about ₹50,000. Ask HR to confirm the method and the amount in writing, and whether it will be deducted from your final dues or paid separately.
If your new employer wants you sooner, ask whether they will reimburse the buyout, usually as a joining bonus. Get that promise written into the offer letter. Our salary negotiation guide has a script for this.
Full and final settlement: what you are owed
- Wages: under Section 17(2) of the Code on Wages, wages due to an employee who resigns must be paid within two working days. This is generally read as two working days from your last working day.
- Leave encashment, bonus and reimbursements: as your company policy and the law provide.
- Gratuity: if you have completed five years of continuous service, or one year as a fixed-term employee.
- Deductions: only what your terms allow, such as an agreed notice buyout or unreturned company property. Ask for an itemised statement.
If wages due to you are not paid, raise it in writing with HR first. If that doesn't work, you can approach the labour authorities in your state under the Code on Wages.
Mistakes that cause trouble later
- Leaving without notice ("absconding"). You may lose your relieving letter, face a recovery claim and get a poor background check result at your next job.
- Accepting a joining date you can't meet. Tell the new employer your real notice period during the interviews, not after the offer.
- Agreeing things only on calls. Early releases and buyout amounts belong in email.
- Burning bridges. Your manager may be asked for a reference, and Indian industries are smaller than they look.
Looking for your next role? Browse jobs on Workafy, and be alert to fake offers that ask you to pay; our guide to spotting fake job offers shows the warning signs.
Sources
- Press Information Bureau: Code on Wages, 2019 explainer, including payment within two working days on resignation
- LiveLaw: Two working days: Code on Wages and an employee's final settlement
- Press Information Bureau: Government announces implementation of the four labour codes (21 November 2025), including mandatory appointment letters and gratuity for fixed-term employees after one year
Frequently asked questions
Is a notice period mandatory in India?
Your notice period is a term of your employment, set by your appointment letter, company policy or standing orders. If your letter has one, you are expected to serve it, or settle it as the letter allows, for example by paying for the days you don't serve.
Can my employer refuse to let me leave?
Your employer can hold you to the notice terms in your appointment letter, but it cannot keep you working indefinitely. Serve the notice, agree an early release, or settle the unserved days as the letter allows, and get every agreement in writing.
How is a notice period buyout calculated?
Usually as your daily basic or gross salary multiplied by the number of notice days you don't serve, depending on what your appointment letter says. Ask HR for the calculation in writing before you agree.
When will I get my final salary after resigning?
Under the Code on Wages, wages due to an employee who resigns must be paid within two working days, which is generally read as two working days from your last working day. Other dues, such as gratuity or reimbursements, can follow their own timelines.
