Mr. Agarwal has given valuable advice. Kindly follow it.
The notice period applicable to employer and employee should be same.
You have posted that:
--“but in the case of a Layoff “
Company has to follow applicable to retrenchment.
-- “and if the person is asked to leave”
It is felt that company can not ask to leave just like that. No one can and no one should ask to write down resignation in office premises. Forced resignation is deemed as termination. Employee should withdraw the resignation at once. Employee may need to prove resignation was extracted by coercion, force, pressure. Employee should record such transactions {audio/visual} and keep some witness/evidence. If many of the employees are facing such situation employee should be witness to each other.
--“will the company need to honor the Notice Period and pay the employee the Salary for three months”
Yes.
In a given situation employee can invoke the Industrial Employment standing orders Act, Payment of Wages Act, SE Act, and ID Act as per explanation of employee under these Enactments or approach civil court.
Companies burn extra energy to convince employee that he/she is not a workman as many of the enactments favor employee and limit the choice to employer. However designation alone does not decide employee is a workman or not.
As per Industrial Employment (Standing Orders) Act, 1946 employer should pay all wages and issue service certificate on last day in office.