Hi,
What is the notice period buyout option for employees and it is calculated?
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In the employee exit process, if an employee has to leave the job, he has to resign and serve a notice period as per the company policy. Notice period varies from company to company. Typically notice period is of 30 days to 60 days. In case an employee has to leave the job on an urgent basis due to studies, early joining in the new job or any other reason, he has an option of notice buyout.
Example, if an employee is supposed to give a notice period of 60 days but he can serve a notice of 30 days, he has to pay 30 days salary to his ex-employer Notice Buyout option also varies from company to company as all the companies do not provide a buyout option for the complete notice period.
In Buyout notice period the employee presented with full and final settlement details to the employing company for reimbursements for settling the reliving procedure from the previous employer organization Or else hiring company pays the employee reimbursements as an advance or bonus for buyout paid to the previous employer.
Notice period buyout is calculated on a gross salary of the employee. It depends on the company that termination will take immediate effect or the employee has to serve notice period.
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