The biggest operational surprise for companies hiring in India for the first time is not compensation, not sourcing, and not the interview loop. It is the notice period.
A 90-day contractual notice is standard at most Indian tech companies, and many enforce it. This guide explains how the system works, why candidates drop out during notice, and how to manage it.
How Notice Periods Work in India
Employment contracts in India typically include a 30, 60, or 90 day notice period. At senior levels, 90 days is standard. Employees who leave without serving the full period may owe the employer a buyout, usually equivalent to the remaining salary for the unserved days. Some companies enforce this strictly; others negotiate.
| Seniority | Common notice period | Early release likelihood |
|---|---|---|
| Junior (0 to 3 years) | 30 days | Common |
| Mid (3 to 7 years) | 60 days | Possible |
| Senior (7+ years) | 90 days | Uncommon without buyout |
| Leadership | 90 days | Rare; transition planning required |
Why Candidates Drop Out During Notice
The 60 to 90 day gap between offer acceptance and joining is the highest-risk window in Indian hiring. Current employers use it to counter-offer, and roughly 20 to 30% of accepted offers in the Indian tech market are lost to counteroffers during the notice period. The candidates most likely to drop are those who accepted but remained emotionally uncommitted. Active engagement through the notice period reduces this significantly.
How to Manage It
- Pipeline ahead: start sourcing 90 days before the actual need. The notice period is not a surprise; build it into the hiring plan.
- Negotiate early release: ask the candidate to negotiate a shorter notice. Some employers agree if the transition is managed well.
- Buyout where it matters: for critical hires, offer to cover the buyout cost. At ₹50L CTC a 30-day buyout is roughly ₹4L, far less than another month of a vacant senior role.
- Stay in contact: weekly touchpoints during notice prevent drift. Share team updates, project context, and pre-onboarding materials.
- Counter-offer preparedness: discuss counter-offer scenarios with the candidate at the offer stage, not after the counter lands.
The India team build practice builds notice-period management into every search from the start, not as an afterthought.
The companies that hire well in India treat the notice period as a phase of the search, not the aftermath. Building the 90-day window into the timeline, staying engaged through it, and preparing for counteroffers turns the biggest operational risk in Indian hiring into a manageable one. The guide to how US companies hire in India covers the wider hiring process this sits within.
Frequently Asked Questions
Pratik leads delivery at Talhive, which runs retained executive search and India team builds for tech companies across the US, UK, Europe, and APAC, with a focus on engineering, AI, product, and design leadership.
Talk to Talhive about building it into the search.
Planning a senior hire in India?
We run retained executive search and India team builds for funded technology companies. Tell us the role and we will map the approach.
Book a Consultation →