In the employee exit process, if an employee has to leave the job, he has to resign and serve a notice period as per the company policy. Notice period varies from company to company. Typically notice period is of 30 days to 60 days. In case an employee has to leave the job on an urgent basis due to studies, early joining in the new job or any other reason, he has an option of notice buyout.
The employee has to make payment for the notice period not served and this money is reimbursed by the new employer if he is joining somewhere. For example, if an employee is supposed to give a notice period of 60 days but he can serve a notice of 30 days, he has to pay 30 days salary to his ex-employer. Notice Buyout option also varies from company to company as all the companies do not provide a buyout option for the complete notice period.