As per any company or any industry policy, an employee needs to resign or intimate current employer that he/she is discontinuing from the services to get his/her salary.
And in regards to serving a notice period, it is also very important but this policy can be tweeked on the basis of mutual understanding between company & an employee.
on this basis salary should be released.
His service can be terminated due to habitual absenteeism but by a procedure of law. First, the employer needs to ask the employee to join duties (few times). If the employee does not respond, then issue charge sheet, initiate domestic enquiry and then terminate.
From the situation, it seems that the employee is still in service (though absent) as he has not yet tendered resignation.
Check my blog www.labourlawhub.com for more information on labour law related issues.