Notice is a condition stipulated in the contract of employment or in the appointment orders or in the service regulations as the case be requiring both the employer and employee to comply with if either of them intends to terminate the contract of employment. At times, it can be a statutory requirement enjoined upon the employer on certain occasions like retrenchment as provided for in section 25-F or 25-N(1) (a) of the Industrial Disputes Act,1947. So far as an employee is concerned, there is no obligation to give statutory notice to the employer in the absence of such a provision in the contract of employment or in the appointment orders or in the service regulations as the case be.
The question whether an employee has to serve the entire notice period is a question of law as well as a question of fact.
If the employer can unilaterally terminate the contract of employment simply by paying the notice period salary in lieu of notice, the employee can also legally buy-out the notice period at his discretion.
However, as a superior party to the contract, the employer enjoys a privilege to accept the buy-out offer or not in the interest of the exigencies of work of the establishment.