The Company reserves the right not to accept salary in lieu of the notice period- is this clause legally enforceable

The following is mentioned in my appointment letter:

Termination of services:
a) Your services may be terminated by either party, giving a written notice for three months or payment of salary in lieu thereof. The Company reserves the right not to accept salary in lieu of the notice period.

My query is the statement "The Company reserves the right not to accept salary in lieu of the notice period" and force an employee to serve the notice period even if the employee is ready to buyout the remainder of the notice period.

While Clause on Termination of Service - "Your services may be terminated by either party, by giving a written notice for three months or payment of salary in lieu thereof," is the generally accepted rule in employment contracts (notice period may vary depending upon company and level/cadre of employee).

In all employment contracts, the employer has an overriding priority. If the employee who is leaving the company is a key person in the company (except for termination of service), or any other person heading any department, such person needs to complete the notice period as prescribed by the company. This is necessary to clear all pending work, identify a successor, and induct the successor on board.

So, your query, "The Company reserves the right not to accept salary in lieu of the notice period," and to force an employee to serve the notice period even if the employee is ready to buy out the remainder of the notice period, is a valid concern. The company has every right to accept notice period intimation or waive the notice period as a special case.

In this scenario, an employee cannot demand; they must simply follow the decision of management within the framework of the employment contract entered into between the employer and the employee.