India's 90-day notice period: buyout, early release, and what HR won't tell you
Everything I learned from serving one, negotiating one down, and helping juniors through about twenty more. Not legal advice, just practice.
Contents
Every second DM I get is about notice periods. "Bhai new company 30 days mein join karne bol rahi hai, mera 90 days hai, kya karun?" So here is everything in one place. I am not a lawyer. This is what actually happens in practice.
Why 90 days
Most service companies and many large product companies in India have 60 to 90 days in the appointment letter. Startups are often 30 to 60. Read your own letter tonight, not when you resign. Many people find out their notice period on the day they put in their papers.
Your four options
- Early release. Ask your manager, in writing, to relieve you early. Attach a handover plan: what you will document, who takes over what, by which date. Managers say yes much more often to a plan than to a request.
- Notice buyout. You pay for the days you do not serve. Check whether your letter says basic or gross, because it changes the number a lot.
- Leave adjustment. Some companies let you adjust earned leave against notice. Many do not. Ask HR for the policy in writing.
- Negotiate the joining date. Most product companies will wait 60 days for a good candidate. 90 is harder, but ask.
Buyout maths, with real numbers
Say your basic is ₹60,000 a month and you want to leave 45 days early.
- Buyout on basic: 60,000 ÷ 30 × 45 = ₹90,000
- If your letter says gross and gross is ₹1,20,000: 1,20,000 ÷ 30 × 45 = ₹1,80,000
Now the important trick: ask the new company to cover it as a joining bonus. Many will, especially if they are the ones asking you to join early. Get it in the offer letter, and check the clawback clause (if you leave within 12 months you may have to return it).
What HR will not tell you
- Do not abscond. If you just stop coming, you may not get a relieving letter, and the next company's background verification can fail months later. I have seen this happen to a friend. He lost the new job too.
- Relieving letter and experience letter matter. BGV asks for them. Get them before your last day if you can, or get a written date.
- Full and final settlement takes 30 to 45 days at most companies. Plan your cash for that gap.
- Leave encashment depends on policy. Check how many days you will be paid for.
- PF: do not withdraw it in excitement. Transfer it to the new employer using your UAN on the EPFO portal.
- Gratuity applies after 5 years of continuous service. If you are at 4 years 10 months, think before you resign.
The counteroffer trap
On day 3 of your notice, your manager may offer 20% to stay. Ask yourself one question: why did it take a resignation? Most people who accept leave within a year anyway.
Early release email template
Subject: Request for early release, (your name)
"Hi (manager), as discussed, I have resigned and my notice period ends on (date). I would like to request an early release on (earlier date). I have prepared a handover plan (attached) covering (modules), with (colleague) taking over (tasks). I am happy to stay reachable for questions for two weeks after my last day. Please let me know if this works."
Checklist
- Read your appointment letter for notice period and buyout terms
- Ask the new company for joining bonus to cover buyout
- Send a written early release request with a handover plan
- Get every approval in writing
- Collect relieving and experience letters
- Transfer PF, do not withdraw
- Keep cash for the F&F gap
Koi doubt ho toh comment karo, I will answer everyone.
Written by
Kunal Bhatia
SDE 2 @ fintech, Hyderabad. 1100+ leetcode, 4 rejections from the same company, 1 offer that mattered. I mentor juniors for free on weekends. Interview Horror Stories is my therapy.
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