Notice Buyout is a process where an employee or a new employer compensates the current employer for the unserved notice period, allowing for an early exit from the organization. Instead of completing the full notice period, the employee pays an agreed-upon amount, typically deducted from the final settlement or covered by the hiring company. Industries like manufacturing, retail, logistics, e-commerce, and facility management services (FMS) often implement notice buyout policies to maintain workforce continuity and minimize disruptions.

For businesses managing contract workers, gig employees, apprentices, and blue-collar workforce, a structured notice buyout policy ensures seamless offboarding, reduces operational delays, and facilitates smooth workforce transitions. By integrating digital HR and payroll systems, companies can automate notice buyout calculations, enforce policy compliance, and manage employee exits efficiently.