Published by MBA Skool Team, Last Updated: May 14, 2015
What is Notice Period?
Notice period is that period of time that an employee must mandatorily work in their job after they have applied for resignation or they have been asked to leave the organization.
Notice period is an important aspect for business continuity because if there is no Notice Period, an employee can leave the organization anytime leaving the work dependant on them unfinished. This would mean lot of issues for the company in case there is no replacement available.
Notice period gives the company this extra time to find the replacement for the resource so that the business or project is not affected. This is also not only from Employer's perspective only but in case an organization asks an employee to leave/quit, the same period gives employee a time to find a new job.
Many a times high Notice Period may lead to lesser attrition but it depends on industry to industry.
In IT Industry, Notice period in service companies in India are in range of 2-3 months.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
Browse the definition and meaning of more similar terms. The Management Dictionary covers over 2000 business concepts from 5 categories.