HR glossary
What is a notice period?
A notice period is the time between resigning, or being told to leave, and your last working day. For most jobs in India it is set by your appointment letter, often 30 to 90 days. For workers who are retrenched, the Industrial Relations Code requires one month's written notice or wages in lieu.
How it works
- Set by: your appointment letter, company policy or standing orders
- Buyout: some employers let you pay for unserved days, or waive them
- Shortfall recovery: deducted from your full and final settlement only if your contract allows it
- Pay in lieu: if the employer asks you to leave before the notice ends, it usually pays for the remaining days
- Retrenchment of a worker with at least one year of service: one month's written notice (or wages in lieu) plus compensation of 15 days' average pay per completed year (Industrial Relations Code, s.70)
Example
- Notice period 60 days, served 30, gross ₹62,000 a month, recovery on gross / 30
- Shortfall 30 days -> recovery ₹62,000, deducted from FnF if your contract allows it
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