Leaving your job
Notice period buyout email format
A notice period buyout means you pay your employer — or your new employer pays on your behalf — for the part of the notice period you will not serve, so that you can be relieved earlier. It is common in Indian companies with long notice periods, when the new employer wants you to join sooner than your notice allows.
Whether a buyout is allowed, and how it is calculated, depends on your appointment letter, HR policy and your manager's approval; in many companies it can be refused for critical roles. The emails below help you ask clearly and professionally, and the calculator gives a rough estimate of the amount so you can discuss it with HR and your new employer.
When to send it
- Ask after you have resigned formally and your resignation is on record.
- Raise it once you have a written offer with a joining date, so you can explain why the earlier date matters.
- Speak to your reporting manager first, then send the email to your manager with HR in CC; managers usually need to approve an early release.
- Ask early in your notice period. A request in the final weeks saves little and is harder for the team to plan around.
- Before you commit, ask your new employer whether they will reimburse the buyout, and get the answer in writing.
Notice period buyout calculator
Enter monthly figures from your payslip and the notice days you want to buy out.
This is only an estimate. Your appointment letter or HR policy decides whether the buyout is calculated on basic or gross salary, whether it divides by 30 calendar days or 26 working days, and whether GST or any other charge is added. Ask HR for the exact amount in writing.
Templates
1Request to buy out the remaining notice period
2Partial buyout (serve some days, buy out the rest)
3Ask HR for the buyout amount and process
4Ask your new employer to reimburse the buyout
5Follow-up when the buyout request has no reply
Do
- Get the buyout approval and your new last working day in writing.
- Ask HR exactly how the amount is calculated before you agree to it.
- Share a dated handover plan — it is often what gets the request approved.
- Confirm that your relieving and experience letters will be issued after the buyout.
- Keep the full and final settlement statement if your new employer is reimbursing you.
Don't
- Do not stop coming to work on the assumption that the buyout will be approved.
- Do not leave without approval; you may not get a relieving letter, which background checks often ask for.
- Do not confirm an earlier joining date to your new employer before the buyout is approved.
- Do not threaten to leave anyway if the request is refused.
- Do not assume the new employer will pay; ask before you commit.
Frequently asked questions
How is notice period buyout calculated in India?
There is no single formula; your appointment letter or HR policy decides. Many companies calculate it on basic salary, as monthly basic ÷ 30 × the days not served. Others use gross salary, and some divide by 26 working days instead of 30. The amount is usually recovered from your full and final settlement. Ask HR for the exact basis in writing before you agree.
Can my employer refuse a notice period buyout?
Often, yes. If your contract says notice can be bought out only with the company's approval, your employer can ask you to serve the full period, for example during a critical project or while a replacement is found. You can still negotiate a partial buyout or a tighter handover plan, but leaving without approval risks your relieving letter and settlement.
Will my new employer pay my notice period buyout?
Some do, particularly when they need you to join earlier than your notice allows. It may be paid as a joining bonus or reimbursed against your full and final settlement statement, and it may come with a clawback if you leave within a set period. Ask the recruiter before you commit and get the arrangement in your offer letter or an email from HR.
Is GST charged on notice period buyout?
Practice varies. Some employers add GST to notice pay recovery, treating it as a service, while others do not, and the question has been decided differently in different rulings. Ask HR whether GST or any other charge will be added to your buyout amount, so that your estimate and any reimbursement request to your new employer are accurate.
Can I adjust pending leave against my notice period?
It depends on your company. Some allow earned leave to be adjusted against the notice period, which reduces the days you have to serve or buy out. Many do not, and instead pay out eligible leave in your full and final settlement. Check your leave policy or ask HR, and get any adjustment approved in writing.