Quick answer: A notice period is the time either side must give before employment ends. In India, managers and supervisors earning above ₹18,000 a month get the notice their contract sets. For a “worker” with a year’s service, the Industrial Relations Code, 2020 requires one month’s written notice, or pay in lieu, before retrenchment.
- The IR Code’s one-month rule covers retrenched workers with a year’s service.
- Managers follow their contract.
- Final wages are due within two working days of the last day, under section 17(2) of the Code on Wages, 2019.
- GST is not payable on notice pay you recover from a leaver, per CBIC Circular 178/10/2022-GST.
How do notice period rules work in India?
By contract for most of your team, by statute for workers you retrench. The “worker” test decides.
| Situation | Who sets the notice |
|---|---|
| Employee resigns | The contract |
| You end a manager’s job | The contract, plus fair process |
| You retrench a worker with a year’s service | IR Code: one month or pay in lieu |
| Worker covered by Model Standing Orders | One month for a permanent worker |
Indian tech and services employers commonly set 30 to 90 days after confirmation. Ninety days is frequent for senior engineering roles. That long window is exactly why counter-offer battles in India stretch on for weeks, with the current employer, rival recruiters and your offer all in play at once.
Can an employee in India leave without serving notice?
Only if you agree, or if they pay in lieu where the contract allows it. You can waive the balance, accept a notice period buyout or hold the person to the full term.
Recovering unserved notice is common.
You net it from the full and final settlement, within the contract’s terms and the Code on Wages deduction limits. The Gujarat High Court in Aculife Health Care v Union of India applied the CBIC circular and held such recoveries are not a taxable supply. So no GST invoice.
Suppose a Pune developer on ₹1,50,000 a month gives 90 days’ notice and wants to leave after 60. If the contract recovers shortfall on gross, the 30-day gap costs ₹1,50,000. Simple maths. You net it from the final settlement, then issue the relieving letter once dues clear.
What about garden leave?
Fine in principle. The person stays employed and paid during notice but stops working, which keeps in-term restraints alive. Write it into the contract first. Then use it.
How does Remunance run notice periods for your India team?
Remunance sets notice terms in every appointment letter, tracks each resignation’s last day and computes any recovery inside the final settlement. Our termination of employment guide explains the exit side in depth. No surprises. To plan an exit without loose ends, talk to an India payroll specialist about notice terms.
What else do people ask about notice periods in India?
What is the standard notice period in India?
There is no single legal standard for office staff. Thirty days is common for junior roles, and 60 to 90 days is common for senior technology and management roles.
Can a company refuse to accept a resignation in India?
It can hold the employee to the contractual notice. The Bombay High Court held in 2026 that an employer which reasonably refused a resignation breaching a training bond need not issue a relieving letter.
Is notice pay taxable in India?
Notice pay you receive in lieu is taxed as salary. Amounts an employee pays to cover a shortfall are not subject to GST.