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Notice Period in India, Explained: 30, 60 and 90 Days, Buyouts and LWD

July 27, 202611 min read

The short answer

Notice period in India typically runs 30 to 90 days depending on employer type rather than on law: large IT services companies commonly enforce 60 to 90 days, product multinationals 30 to 60, and funded startups 30 to 45. It is a contractual term, not a statutory one, so the employment agreement governs. It can often be shortened by buyout, where the employee or the new employer pays the unserved portion, but the current employer is generally not obliged to accept. For recruiters, notice is the single most underused screening signal, because a perfect candidate who cannot start for three months is not a solution to an urgent role.

Notice period is the most consequential and least discussed variable in Indian hiring. Salary gets negotiated openly, skills get assessed for hours, and then a process collapses because the candidate cannot start until October. This guide covers how notice actually works, what it runs by employer type, and how both sides should handle it.

The basics: contract, not law

India has no single statute fixing white-collar notice periods. It is a term of the employment contract. State Shops and Establishments Acts set minimums in some cases, typically around 30 days, but those are floors rather than caps, so a contract specifying 90 days is normally enforceable.

This is why notice varies so much between two people doing identical work. It reflects the employer's attrition policy and how painful they found their last wave of exits, not the nature of the job.

What notice actually runs, by employer type

Notice length is highly predictable once you know where someone works. These are the patterns we see consistently in the Indian market, and they are the priors our own joining-window model uses before any candidate-specific evidence is applied.

  • Large IT services firms: commonly 60 to 90 days, with 90 the norm at the largest. This is the single biggest cause of long joining timelines in Indian tech hiring, and it applies to a very large share of the candidate pool.
  • Product multinationals and GCCs: typically 30 to 60 days. Global HR policy tends to pull toward shorter notice than Indian services norms.
  • Funded startups and unicorns: usually 30 to 45 days. Shorter contractually, and often flexible in practice when handover is clean.
  • Senior and leadership roles: stretch longer at any employer type, because handover genuinely takes longer and the employer has more to lose.
  • Probation: frequently much shorter, sometimes 15 days or less. Worth checking, since a candidate four months into a job may be far more available than their employer's standard policy suggests.

Two situations compress these sharply: a candidate already serving notice, and a candidate between roles, who is immediately available. Both are worth identifying early, because they are the people who can solve an urgent requisition.

Buyout: how it works and where it fails

A buyout means paying for unserved notice days in order to leave early. Three things decide whether it will actually work.

  • Does the contract allow it. Many do; some explicitly do not, and some make it conditional on management approval, which is functionally the same as not allowing it.
  • What is the base for the calculation. Salary for the unserved days, but on basic pay or on full CTC. The difference can be several times the amount, and candidates routinely underestimate it.
  • Will the current employer agree. This is the one people forget. Even with a buyout clause, employers can and do refuse when a project is at a critical stage. A clause is a right to ask, rarely a right to leave.

If the new employer is funding the buyout, get it in writing in the offer letter, including whether it is paid up front or reimbursed after joining. Verbal commitments here fail often enough to matter.

Terms that confuse people

  • LWD: last working day, the actual final date of work. Ask for this rather than notice length once someone has resigned.
  • Garden leave: the employer pays out the notice but stops the employee working, common for senior or competitively sensitive exits.
  • Relieving letter: confirmation that the employee left properly having served or settled notice. Most Indian employers ask for it before onboarding, which is why abandoning notice creates real downstream problems.
  • Full and final settlement (F and F): the closing payment covering dues, unused leave and any deductions, typically settled within about 30 to 45 days of exit.

For recruiters: screen for it in the first conversation

The most common wasted cycle in Indian recruiting is running four interview rounds and then discovering the timeline does not work. Establish the joining window in the first call, alongside compensation, not at offer stage.

Ask three specific questions rather than one vague one. What is your contractual notice. Has your employer released people early in practice. Does your contract permit buyout, and would you consider it. The answers to those three predict the actual start date far better than the number on the contract, which is what most databases record if they record anything at all.

Better still, know the likely answer before you write the first message. Our platform estimates a joining window for every sourced profile from employer type, seniority and any availability the candidate has stated publicly, then confirms it from their first reply. That is why joinability belongs in your screening criteria, not in your offer-stage surprises.

For candidates: the clean exit checklist

Read your contract before you resign, not after. Confirm the buyout base if you intend to use it. Ask whether accrued leave can offset notice. Get the release date agreed in writing with your manager. And do not start the new job before your LWD, however tempting dual employment looks, because it jeopardises the relieving letter that the next employer will ask for.

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Frequently asked questions

What is a notice period in India?

It is the period between resigning and the last working day, during which the employee continues working and being paid. In India it is set by the employment contract rather than by a single national law, which is why it varies so widely between employers. Typical white-collar notice runs 30 to 90 days, with 90 days common at large IT services firms and 30 days more common at startups and some product companies.

Is a 90 day notice period legal in India?

Yes. Notice period is a contractual term, and a 90 day clause in a signed employment agreement is generally enforceable. Some state Shops and Establishments Acts specify minimum notice from either side, but they set floors rather than ceilings, so a longer contractual notice is normally valid. Disputes usually turn on whether the employer is withholding relieving documents or dues rather than on the length itself.

What is a notice period buyout?

It is paying for the portion of notice you do not serve, so you can leave earlier. The amount is usually the salary for the unserved days, and the contract defines whether that is basic pay or full cost to company, which can differ substantially. Either the employee or the new employer pays it. The important caveat is that acceptance is usually at the current employer discretion, so a buyout clause is an option to request, not a guaranteed exit.

What does LWD mean?

Last working day: the final date an employee actually works, after notice is served or bought out. Recruiters ask for LWD rather than notice length because it is an actual date rather than a theoretical duration, and it accounts for leave adjustment, buyout and any extension the employer negotiated. When a candidate gives you an LWD, they have usually already resigned.

How can I reduce my notice period?

Four legitimate routes: request a buyout of the unserved days, ask to offset accrued but unused paid leave against notice where the policy allows, negotiate an early release with your manager once handover is genuinely complete, and check whether your contract shortens notice during probation. Simply not turning up is not one of them, since it typically forfeits your relieving letter and full and final settlement, both of which the next employer will ask for.

Why does notice period matter so much in Indian recruiting?

Because it determines whether a candidate can actually solve the problem you are hiring for. A role that needs someone in six weeks cannot be filled by a candidate serving 90 days, however good they are. Screening for joining timeline early prevents the most common wasted cycle in Indian recruiting, which is running a full interview loop and then discovering the start date does not work.