Vikram got a dream offer from a startup in Pune. Joining date: 2 weeks. His current notice period: 90 days. His new HR said "We can wait 30 days maximum." His current HR said "We need 90 days or pay buyout." Vikram had never heard the word buyout before. He spent the next 3 hours on Google, completely confused.
Notice period buyout is one of those HR terms nobody explains during onboarding — until you try to leave. Here's everything you need to know before you resign from Infosys, TCS, or any IT company in India.
What Is Notice Period Buyout?
Buyout means paying your current employer for the notice days you didn't serve. Instead of working 90 days, you pay for 60 unserved days and leave early. The amount comes from your full and final settlement or as a separate payment.
How to Calculate Buyout Amount
The Formula
(Monthly Gross Salary ÷ 30) × Remaining Notice Days
Example
Gross salary: ₹60,000/month. You served 30 days of a 90-day notice. 60 days remaining.
Buyout = (60,000 ÷ 30) × 60 = ₹1,20,000
Calculate your last working day and buyout timeline. Use our salary hike calculator to estimate daily salary. Find your gross monthly salary with our CTC Calculator.
Who Pays Buyout — You or New Company?
- You pay — deducted from F&F if you leave early without agreement.
- New company reimburses — some startups and MNCs offer buyout reimbursement as part of the offer. Always ask during negotiation.
- Split deal — you pay 50%, new employer pays 50%. Common for senior hires.
When Can You Negotiate Early Exit?
- You have a complete handover document and trained replacement
- Your project phase is finished — no critical deliverables pending
- Your manager supports early release (this matters more than HR policy)
- Company is laying off or restructuring (they may waive notice)
What If Company Refuses Early Exit?
Most employment contracts in India are not easily enforceable for notice period in court — but companies can withhold experience letters, mark absconding, or deduct buyout from F&F. The practical advice: negotiate with your manager first, HR second. Document everything in email.