Notice period is the time between submitting your resignation and your last working day. Most companies in India require 30–90 days notice. This guide explains how to calculate working days, buyout amount, and your exact last working day.

How Notice Period is Calculated

Notice period is typically counted in calendar days (not working days), unless your employment contract specifies otherwise. Starting from your resignation date, count forward the stipulated notice days — your last working day is that date.

Notice Period Buyout (Early Exit)

If your new employer needs you to join before your notice period ends, you can pay your current employer for the remaining notice days:

Buyout Amount = (Gross Monthly Salary ÷ 30) × Remaining Notice Days

Example: Gross salary ₹1,00,000, 30 days remaining notice = ₹1,00,000÷30 × 30 = ₹1,00,000 buyout. Many new employers reimburse this amount.

What If You Don't Serve Notice?

  • Employer can recover notice period salary from Full and Final settlement
  • Experience letter/relieving letter may be withheld
  • Legal action is rare but possible for senior roles with binding contracts
  • PF transfer is not affected — it's your money regardless
  • Background verification may flag sudden exits
Important: Never join a new company without a proper relieving letter from your current employer. Most MNCs require it during background verification — a missing relieving letter can cost you the new job.

Garden Leave

Some companies place resigning employees on "garden leave" — you serve the notice period at home without coming to office, while still receiving full salary. This protects the company from you sharing information with competitors. During garden leave, you cannot join a new employer until the notice period officially ends. Use our Notice Period Calculator to find your exact last working day.