Notice Period Calculator

The notice period refers to the time between when you submit your resignation and your last working day. It provides sufficient time for the employee and the employer to make adequate preparations for the changeover. Notice periods in India usually vary between 30 and 90 days, according to the organization and the individual's position and their contract.

While there are organizations within IT and consultancy that demand 90 days' notice due to the fact that filling senior positions is not an easy task, startups usually have a 30-day notice period because the issue of replacement becomes harder.

In the notice period, you are expected to pass on responsibilities to your replacement.

The calculation depends on whether your company counts calendar days, business days, or has specific rules about holidays and weekends.

Calendar days (most common in India)

If you quit your job on 5th March, by giving a 30-day notice period, your last working day will be 4th April. Indian companies calculate all days in the month, whether weekdays or weekends. The date of your resignation is the first day (for some companies, this will be the second day).

Business days (less common)

Some companies count only working days. A 30-day notice period with weekends off means approximately 42 calendar days. If your company follows this method, account for public holidays too.

Early release and negotiation

You can request early release from your employer. Some organizations may agree with a shortened notice period provided that someone else takes up the work. However, there are certain organizations that will have a policy on early release, which needs to be approved by both the manager and HR.

Notice period durations vary widely across industries and roles.

In case you find yourself in a scenario where you cannot honor the notice period fully, then it becomes necessary for you to make a lump sum payment to the firm, which would be equal to your monthly income for the remaining number of days.

This would be calculated as follows: Buyout Payment = ((Monthly CTC/Gross/Basic Salary/30) x No. of remaining days). The pay portion of the buyout can depend on either CTC, Gross, or Basic, depending on the policy of the employer. Things to keep in mind:

• Tax implication: Notice period buyout paid by the employee is generally not tax-deductible. It comes from your post-tax income.
• Recovery from full and final: Most companies deduct the buyout amount from your final settlement (remaining salary, leave encashment, bonus).
• New employer bearing the cost: There is a policy called "Buyout reimbursement," according to which your new employer pays the notice period cost. It is generally offered when hiring a senior employee.
• Legal enforceability: In India, courts have varying opinions regarding the enforceability of notice periods. Employers can refuse to issue relieving letters and experience certificates.

"Garden Leave" is when the employer tells you that they do not want you to report to work for the period of your notice period, although you will be paid your salary during this time. During this period, you are still bound by your employment contract and cannot join any other employer.

Such an arrangement is generally applicable to high-ranking officials, who would be privy to the company's secrets and contacts. When you go on garden leave, you will still receive your pay and other additional perks. Garden leave is common in the United Kingdom, the financial industry, and consulting firms. Garden leave clauses in India are prevalent in the contracts of top-ranking officials and sales managers.

Most Indian companies have a shorter or zero notice period during probation. A typical probation period lasts 3 to 6 months, and the notice requirement during this time is usually 7 to 15 days (sometimes immediate). Check your appointment letter or employee handbook for the exact terms. If the probation clause says "either party may terminate with 7 days' notice," that applies to both you and the employer.

The notice period becomes effective after the probation period ends. There are certain companies that offer an automatic extension in the notice period after the probation period is confirmed, without informing the employee.