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Notice period buyout email format

5 copy-ready templatesUpdated

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.

On basic salary—Basic ÷ 30 × days
On gross salary—Gross ÷ 26 × days

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

SubjectRequest for Notice Period Buyout – [Your Name], [Employee ID]
Dear [Manager Name], I submitted my resignation on [Resignation Date], and as per my [Notice Period]-day notice period, my last working day would be [Original LWD]. I have received an offer that requires me to join by [Joining Date]. I would like to request a buyout of the remaining notice period so that I can be relieved on [Requested LWD]. I am willing to pay the buyout amount as per company policy, either adjusted against my full and final settlement or paid separately, whichever HR prefers. Before my last day, I will complete the handover of [projects / responsibilities] to [Colleague Name] and document [key processes]. I am also happy to be available on call for a reasonable period afterwards. I would be grateful if you could approve this request. Regards, [Your Name] [Employee ID] | [Designation], [Team]

2Partial buyout (serve some days, buy out the rest)

SubjectRequest for Partial Notice Period Buyout – [Your Name], [Employee ID]
Dear [Manager Name], As you know, my last working day as per my [Notice Period]-day notice period is [Original LWD]. My new role starts on [Joining Date], so I would like to request a partial buyout. I propose to serve [X] days of my notice, until [Requested LWD], and buy out the remaining [Y] days as per company policy. This gives enough time to complete the [project milestone / handover] we discussed, which I will finish by [Date]. Please let me know if this works for you, or if you would like to adjust the dates. Regards, [Your Name] [Employee ID] | [Designation], [Team]

3Ask HR for the buyout amount and process

SubjectNotice Period Buyout – Amount and Process – [Your Name], [Employee ID]
Dear [HR Name], My manager, [Manager Name], has approved my request to be relieved on [Requested LWD] instead of [Original LWD], subject to a buyout of the remaining [N] days. Could you please confirm: - The buyout amount, and whether it is calculated on basic or gross salary - Whether any GST or other charge will be added - Whether it will be recovered from my full and final settlement or paid separately - Whether my relieving letter and experience letter will be issued on my last working day A written statement of the amount would also help, as my new employer may reimburse it. Thank you. Regards, [Your Name] [Employee ID] | [Designation], [Team]

4Ask your new employer to reimburse the buyout

SubjectNotice Period Buyout Reimbursement – [Your Name], [Role]
Dear [Recruiter Name], Thank you again for the offer for the [Role] position. To meet the joining date of [Joining Date], I would need to buy out [N] days of my notice period at my current company. Based on my company's policy, the estimated buyout amount is ₹[Amount]. Could you please confirm whether [Company] can reimburse this, and if so, in what form — for example as a joining bonus or as a reimbursement against my full and final settlement statement? A written confirmation would help me finalise the request with my current employer. Thank you for your support. Regards, [Your Name] [Phone] | [Email] [LinkedIn URL]

5Follow-up when the buyout request has no reply

SubjectRe: Request for Notice Period Buyout – [Your Name], [Employee ID]
Dear [Manager Name], I am following up on my request of [Date] to buy out my remaining notice period and be relieved on [Requested LWD]. My new employer has asked me to confirm my joining date by [Date], so an update would help me plan. My handover plan is ready to share, and I am happy to discuss any changes to the dates. Thank you for your time. Regards, [Your Name] [Employee ID] | [Designation], [Team]

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.