Resignation Notice Period Confusion: Can My Company Skip the 3-Month Notice?

In my contract, it is clearly mentioned that "Your service may be terminated by the Company at any time with three months' notice on either side or payment of three months' salary in lieu thereof."

Resignation Notice Period Query

My question is, if I give my resignation with 3 months' notice, is the company bound to accept the same, or may they accept my resignation without accepting the notice period? In option two, can I claim for 3 months' notice pay?

Regards,
Saraf

Unless the entirety of your 'Employment Contract' is made available, it may be short-sighted to provide you with authentic advice.

The company can either adhere to the 3-month notice period or release you immediately upon receiving your resignation. One cannot force the full payment of the notice period salary. For instance, if an employee is hired within 15 days after your resignation and completes the handover within a month, totaling 60 days, the company may release you after compensating you for 60 days. There is no obligation for the company to pay your salary for the remaining 30 days. A similar situation applies if your new employer requires you to start within a month; you can work for one month, be paid for 60 days, and then be relieved.

Hope this clarifies your doubt.