Dear friend,
Are you talking about the practice being followed in Kenya? sorry I have no info.to offer you ready answer. However in India, 'buying' the inserved notice period if compensated by paying the emoluments at the rate at which what rate the employee would have drawn had he continued in the employment is agreeable. There could be exemptions & exceptions at the discretion of the employer. Some would agree with- limited to fixed components like Basic +DA +HRA leaving other variables out. Similarly where CTC pattern is followed. There is no hard and fast rule. It depends on the practices/polices followed by the employer.