Good read. Most of these companies are classified as service companies (unlike the real product companies which have a more reasonable 30 day notice).

Another loophole developers found was to: buy-out 2 months from the the notice period. viz pay some pre-decided cost to the existing company , which obviously they made the new company payout on their behalf. For most starttups\ product companies thethe buyout cost was negligible compared to the funding they were getting making a mockery of the system.