HUMAN RESOURCE POLICY

NOTICE PERIOD BUY-OUT POLICY

Module no MAT HR/ Total Pages

Issue Date Initiated by HR
Revision No. & Date Approved by MAT India Management
Subject Notice Period Buy out Policy Supersedes All earlier policies

Applicable to All Employees of MAT India Distribution All employees

NOTICE PERIOD BUYOUT POLICY

PURPOSE

The notice period buyout policy is established to provide guidelines for situations where the
employer needs to expedite the start date of a new employee and may request the buyout
of a notice period for the immediate onboarding of an employee.

This policy outlines the conditions, processes, and responsibilities associated with such
buyouts.

ELIGIBILITY

An employer can buy out an employee's notice period in the following situations to expedite
the onboarding process

1. Urgent Project Deadline

2. Unique Skillsets required
3. Short Staffing situations
4. Key employee departure or Succession Planning
5. Operational Emergencies approved by Management (Group MD/ MINT GM)

GENERAL GUIDELINES

To facilitate a notice period buyout for immediate on-boarding, the following steps and
considerations are to be taken into account-

 The Respective HR is responsible for initiating the notice period buyout process.
 The HR department to assess the need for prompt onboarding and consider the option
of compensating the selected candidates for their notice period from their current
employer.
 The procedure for compensating the notice period, is to begin with a mutual agreement
between HR and the candidate at the time of hiring.
 The HR Representative handling the buyout process to seek approval from the
Corporate HR and Plant Director/GMD to ensure that the decision of buyout aligns with
the organizational goals and operational requirements.

VP- HR GMD GM- MINT

For Internal Circulation Only

 HUMAN RESOURCE POLICY

 Upon approval of the notice period buyout, HR to notify the candidate and discuss the
remaining notice period amount that needs to be compensated.
 HR to ensure that this communication is in writing and documented, along with the offer
letter (Annexure-I).
 HR is required to obtain approved email confirmation from the relevant
authority/approving authority regarding the candidate's notice period buyout offer.
 HR to ensure that the notice buyout document clearly outlines the tentative amount to
be paid, the duration of the notice period being bought out, and any other pertinent
details regarding the employment transition for future reference.
 During the selected candidate on-boarding process, the HR department is responsible
for gathering and sharing all necessary documents and information.
 This includes obtaining approval for the buyout of the notice period from the
appropriate authority and providing this information to the finance department.
 The approval email should clearly state the buyout amount and confirm the selected
candidate's eligibility for compensation.
 The notice period amount to be paid only after the candidate submits their Full and Final
(F&F) details, which may be a few months later also.
 Upon receipt of the aforementioned documents, the finance department is responsible
for settling the payment within 30 days.
 Employees who receive notice buyout benefits are obligated to reimburse a portion of
these benefits if they choose to voluntarily terminate their employment within a
specified time frame following the initial on boarding process.

Period Repayment percentage

Employee leaves within 12 months of joining 100%
Employee leaves between 12 to 18 months of joining 75%
Employee leaves between 18 to 24 months of joining 50%
Employee leaves after 24 months of joining 0%

MANAGEMENT DISCRETION
The management reserves the right to alter/amend/discontinue this policy at its sole
discretion.

VP- HR GMD GM- MINT

For Internal Circulation Only

 HUMAN RESOURCE POLICY

ANNEXURE-I
Dated_______________

Mr. ________________
Address: ____________
____________________

Subject: Offer Letter

Dear ____________,

With reference to your application & subsequent interview with us, we are pleased to
appoint you as “________” in ____in our organization on mutually agreed terms &
conditions.

You will be responsible for all activities or any work required for the organization,
commensurate with your qualification & experience as decided by the Management.

You are requested to join us on or before ______, 202_.

A regular letter of appointment will be issued to you on your reporting for duty with us.

Please bring the following documents at the time of joining:

 Relieving Certificate / Experience Letter (as applicable).

 4-Passport & 4 Postcard Size Photographs.
 Photocopies of Educational Certificates.
 Affidavit/Police verification for no criminal record.
 Age Proof – High School Certificate.
 Photo ID proof (Aadhaar Card/PAN card/Passport) for opening a Bank Account.
 Fitness Certificate by MBBS/MD Doctor.
 Latest Form 16 if applicable.
 Covid-19 Vaccination Certificate.

We acknowledge and agree to compensate you with an amount of _____________on the

submission of supporting documents demonstrating any deductions made by your
previous organization during the Full and Final (F&F) settlement or non-payment of salary.

Thanking you,
Sincerely,

For MAT India Technologies Pvt. Ltd.

Vice President –Corporate HR

VP- HR GMD GM- MINT

For Internal Circulation Only