Section 135 in The Companies (Accounting Standards) Rules, 2006
135. An enterprise may be committed, by legislation, by contractual or other agreements with employees or their representatives or by an obligation based on business practice, custom or a desire to act equitably, to make payments (or provide other benefits) to employees when it terminates their employment. Such payments are termination benefits. Termination benefits are typically lump-sum payments, but sometimes also include:
(a)enhancement of retirement benefits or of other post-employment benefits, either indirectly through an employee benefit plan or directly; and(b)salary until the end of a specified notice period if the employee renders no further service that provides economic benefits to the enterprise.
