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I left a job after 8 years. It took 3 months to do a thorough knowledge transfer (documentation and training).

It's a business-critical system so as a professional, I wanted to ensure my replacement's (and my former team's) success.

I left on very good terms.

I would guess they aren't required to give any notice. However, they are probably required to pay him at least 3 months of salary after they do. If they choose to pay without having the employee do something for them during those 3 months, it's their call.

Time or money?

If they were the ones ending the contract then I also would have to stay for 3 months (getting paid for it).

I would get no money if we would both agree to let me go on the first day. They didn't want me to leave and I was not in a hurry to go on the first day. So I stayed for the whole period and tried to do my best both for my co-workers and my employer.

Quite common in many European countries.

The company probably doesn't care about his reference.