Rashid,
You know more about him then all of us. You will know yourself if he is the kind to respect constructive feedback or not.
As I see it, you have two options:
1: Fire him/her immediatly. Make an example, because if HR is discussing salaries then trust factor of the whole company is under question. you may never be able to reprimand another employee for doing the same mistake.
2: On the other hand, if you feel he is good at work and is doing it more out of a habit to gossip and chit-chat than with any malice in heart for the company; then move him to another department where his/her work can be appreciated and he/she does not get a chance to gossip thus. Make sure he knows why this move is being made.
Regards,
Kavitha