Settlement Of Notice Period Calculation

Hello All,
I am seeking some suggestions from seniors on following matter.
During notice period can company hold salary on an employee? ie. If employee having notice period of three/two months and management informed that employee has to serve his complete notice period.
Then in said situation, what should be the solution/practices HR shall suggest which will be beneficial for employer and employee.

Here is Two Cases Arrives
1 Notice Period is served by employee
if a employee serve during the notice period then his salary can be on hold but within two month you have to give his money as full and final
If employee do not serve the notice period then we can deduct the amount From his F&F depends upon Terms & Condition of Appoinment Letter . But esi contribution would be full till he is in the job.