Notice Period
Notice period is the time an employee must continue working after resigning, or that an employer must give before terminating, as set by the employment contract.
Also known as: notice period meaning, notice period buyout, notice pay
In India it is contractual rather than statutory for most white-collar roles — thirty, sixty and ninety days are all common, and ninety is typical in IT services. Shops and establishments legislation sets minimums in some states for certain categories, but the contract usually specifies more.
Two mechanisms handle a shortfall. A buyout means the employee pays the employer for the unserved days, usually at basic salary, and leaves earlier. A waiver means the employer chooses not to enforce it. Both should be recorded explicitly, because the difference shows up in the full-and-final settlement as a recovery or its absence, and a verbal agreement about it is the single most common cause of an F&F dispute.
The last working day is not always the resignation date plus the notice length. Leave taken during notice may or may not count towards it — many policies say it does not, which extends the actual last working day — and that interacts with encashment of the remaining balance at exit.
For the employer, the operational question is not the arithmetic but the handover. Notice exists so knowledge transfers; a served notice period where nothing was handed over has met the contract and failed its purpose.
Handled in SignHR
Onboarding & Offboarding
Joining to exit in one flow: offer letters, digital joining forms, e-signatures, welcome workflows, clearance checklists, and full-and-final settlement.
See onboarding & offboardingRelated terms
Full and Final Settlement (F&F)
Full and final settlement is the closing calculation when an employee leaves — everything still owed to them, less everything they owe, paid as one amount after the last working day.
Gratuity
Gratuity is a lump sum an employer pays an employee who leaves after five or more completed years of continuous service, calculated as fifteen days' wages for every year served.
Probation Period
Probation is an initial period of employment during which both sides assess the fit, usually carrying a shorter notice period and reduced access to some benefits until the employee is confirmed.
LOP (Loss of Pay)
LOP is an unpaid absence — a day an employee did not work and had no paid leave balance to cover, so the corresponding salary is deducted from that month's pay.