After testing various scenarios, the comment by @jcalz helped to pass all test cases, where if we add type as number or null.

const var1: number | null = null;
    
function test(param1:number | null){
   console.log(param1);
}
    
test(var1);

All fields in JavaScript (and in TypeScript) can have the value null or undefined.

You can make the field optional which is different from nullable.

interface Employee1 {
    name: string;
    salary: number;
}

var a: Employee1 = { name: 'Bob', salary: 40000 }; // OK
var b: Employee1 = { name: 'Bob' }; // Not OK, you must have 'salary'
var c: Employee1 = { name: 'Bob', salary: undefined }; // OK
var d: Employee1 = { name: null, salary: undefined }; // OK

// OK
class SomeEmployeeA implements Employee1 {
    public name = 'Bob';
    public salary = 40000;
}

// Not OK: Must have 'salary'
class SomeEmployeeB implements Employee1 {
    public name: string;
}

Compare with:

interface Employee2 {
    name: string;
    salary?: number;
}

var a: Employee2 = { name: 'Bob', salary: 40000 }; // OK
var b: Employee2 = { name: 'Bob' }; // OK
var c: Employee2 = { name: 'Bob', salary: undefined }; // OK
var d: Employee2 = { name: null, salary: 'bob' }; // Not OK, salary must be a number

// OK, but doesn't make too much sense
class SomeEmployeeA implements Employee2 {
    public name = 'Bob';
}

You could set strictNullChecks into your tsconfig.json, but you have to annotate the type

const x: number = null

But please, pay attention, x is and will be null for JS.