How to enable notice period buyout in the Full and Final (FnF) settlement

A notice period buyout allows an employee to leave the organization before completing the required notice period.
In this process, the employer waives or shortens the notice period in exchange for compensation based on the employee’s salary, position, and remaining notice days.

This arrangement is usually defined in the employment contract, and in some cases, the new employer reimburses the buyout amount.

Steps to Enable Notice Period Buyout in FnF Settlement

1. Go to Org → Exits.

2. Click the Exit Process tab.

3. Open the Exits in Progress section.

4. Find the employee and click Manage under the Actions column.

   

5. In the side window, go to the Finances tab.

6. Click Review & Finalise.

   

7. On the Review and Finalise Payables page, click on Others.

8. In the Notice Period Buyout section:

   • Select Yes for “Do you want the employee to buy out the remaining notice period days?”

   • Choose your Buyout Policy from the dropdown.

   → The system will auto-calculate the buyout amount based on the policy formula.

9. You can also manually enter the number of days and total amount if needed.

10. Click Save & Next, then proceed to Finalise.