What a Notice Period Buyout Actually Means
When you resign and cannot serve your full notice period, your employer can recover the shortfall from your final salary. This is called a notice period buyout, you are paying the company for the days you did not work. The amount is calculated on your basic salary, not your CTC. If your offer letter says "one month's notice" and your basic is ₹40,000, you owe roughly ₹40,000 minus the days you did serve. Read your appointment letter carefully: some companies calculate on gross salary, and that clause, if signed, is enforceable.
