What Is The Meaning Of The Salary In Lieu Of Notice?

Hello everyone,
what is the meaning of the salary in lieu of notice ? what if , if any employee resigns and doesn't serve the notice period ?
Regards
Swati

The letter of appointment normally contains a stipulation that if an employee wants to resign, he/she has to give one month notice ( the period may vary with the company) or salary in lieu of notice. which means if the employee does not give one month notice or as many months as prescribed, in the letter of appointment, he/she has to pay one month salary or as many months salary as prescribed in the letter of appointment.
B.Saikumar

Dear Guidance Seeker
Please clarify if the Person who tendered Resignation is / was a Probationer or an Employee already Confirmed on completion Probationary Period ?
An Employee on Probation need not give any Notice Period.
Kritarth Team

While Resigning from service, one should give notice period of one month before leaving from service. This notice period will help the organization to recruit another person without any work suffering.
Hence, the notice period is required to be given. In case, there is no work suffering, the management may relieve him from service on request of the employee without notice of one month. In such case, the employee will have to pay one month salary in lieu of notice period. In other words, the company can deduct the same from the full and final settlement amount or they can waive the same depending the service of the employee.