Notice buyout: what is it?
If an employee must quit their position, they must resign and give notice in accordance with corporate policy. Different companies have different notice periods. The notice period is usually between thirty and sixty days. An employee has the option of a notice buyout if he must quit the company immediately for any cause, including studies, starting a new job early, or any other reason.
If the employee is joining a new company, the new employer will repay the employee for the money he must pay for the notice period that was not fulfilled. For instance, if an employee is required to give 60 days’ notice but is able to give just 30 days, he must reimburse his former employer for 30 days’ wages. Take note Because not all organizations offer a buyout option for the whole notice period, buyout options also differ from company to company.
