Notice Pay Recovery - Terminating An Employee

dear it is give and take policy,if are terminating someone ,how u pay to the individual,you recover in same way. tks j s malik

1. Is there a specific law that deals with large scale retrenchment and compensation for said retrenchment in IT companies?
2. What is the law regarding the compensation to be given to employees of IT companies upon termination? What amount is to be given to them. How about the Medical Expenses and LTA components of the package?
3. A lot of companies offer employees the option of resigning in orde to avoid the ignominy of "getting sacked". Is this a wise option to choose? Is an employee not entitled to retrenchment compensation if he resigns, especially since it is under such circumstances?
4. Most layoffs occur with immediate effect as the companies do not want to pay salaries for the notice period, is this permissible?
5. During the notice period (after being paid off or resigning) what components of salary are due to the employee? i read somewhere that while serving the notice period, the employee doesnt receive HRA, Special Allowance, Cost of Living allowance, Travel allowance etc and will ONLY get the basic pay. Is this true?