A buyout option is a provision in an employment contract that allows an employee to terminate their agreement with the employer and leave the company immediately without serving a notice period. The employee has to make payment for the notice period not served, and this money is reimbursed by the new employer if the employee is joining somewhere else. The buyout option varies from company to company, and not all companies provide a buyout option for the complete notice period.

A buyout option can have several advantages, such as enabling the employee to leave the company sooner rather than later without waiting for the end of their notice tenure, which is advantageous if the employee has to start working immediately in the new job. It can also prevent conflict between the employee and the company.

A buyout option can also refer to a purchase option provided to a counterparty in a power purchase agreement or lease for a project or group member agreement. In this case, the buyout option allows the counterparty to purchase the project or group member agreement.

Buyouts can also refer to agreements between an employer and employee to terminate an employment agreement in exchange for a settlement package for the employee. These types of buyouts can be voluntary or less voluntary and more "a precursor to layoffs".

In summary, a buyout option can refer to a provision in an employment contract that allows an employee to leave the company immediately without serving a notice period, or a purchase option provided to a counterparty in a power purchase agreement or lease for a project or group member agreement. Buyouts can also refer to agreements between an employer and employee to terminate an employment agreement in exchange for a settlement package for the employee.