Notice Period Buy Out

Jan 02, 2026 60 views 2 answers
Employment Law
Anonymous
Jan 02, 2026
Employment Law
► Hi, I am working in a company where I have resigned and asked for an early release of 15 days despite having 60 days notice period and they refused but in my appointment letter it's mentioned at clause 5(a) that after expiry of the probation period and once completed Service guarantee period , service can be terminated by giving 60 days notice from either side or payment in lieu. Probation period is 3 months I have already crossed and Service Guarantee period is 18 months inclusive of probation period that also I have passed as I joined here 27th March 2023
60 views
2 answers

2 Answers

Jan 05, 2026

Dear Sir,

 

What the Employer Can Lawfully Do

The company may:

Deduct salary for the unserved notice period

Adjust against full & final settlement

Ask you to handover work/assets

But they cannot:

Reject resignation outright

Force physical attendance

Withhold relieving letter/experience letter without justification

Threaten absconding if notice pay is offered.

 

You may then:

Send a legal notice

Approach the Labour Commissioner

Claim damages if career loss occurs due to illegal withholding.

 

If satisfied the give me rating.

Jan 05, 2026

Dear Sir, as per your query,

 

1. Right to pay in lieu of notice: Since Clause 5(a) allows termination with 60 days’ notice or payment in lieu and you have completed both probation and the 18-month service-guarantee period, the employer cannot force you to serve the full notice if you are willing to pay salary for the unserved period.

 

2. Refusal has weak legal basis: An employer may refuse early relieving only if the contract excludes buy-out or ties exit to a specific condition. Here, the clause is mutual and unconditional, so denial despite offering pay in lieu is contractually unsustainable.

 

3. Next Step: Give a written notice/email clearly invoking Clause 5(a), offer payment for 45 days (remaining notice), seek relieving/experience letter, and state that continued refusal may amount to breach of contract. If you don't receive any reply, you need to send a legal notice demanding immediate relieve and compensation. 

 

For further details, feel free to contact our OLQ Team for a detailed discussion. 

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