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Pay during the notice period. The person leaving should be paid as normal when they're working their notice period. This includes if they're willing to work but the employer has asked them not to.
If a notice period such as one month is required for an employer to terminate a contract, a 'payment in lieu of notice' is immediate compensation at an amount equal to that an employee would have earned as salary or wages by working through the whole notice period: for example, one month's salary.
If you are continuing to work during your notice period then you are entitled to the payment of your wages as normal and in accordance with your contract of employment. A payment in lieu of notice would not normally include overtime payments, shift premiums and other bonuses that depend on you working.
If you require employees to provide two weeks' notice of their resignation, you may have to pay them for that full period even if you release them earlier. But, even if you only request the advance notice, it still may be better employee relations to pay for that full two-week period.
This could also be in breach of your contract. If you leave your job to work elsewhere during your notice period, your employer could instigate legal action to stop you doing this.
An employee is usually required to serve the agreed notice period before he can leave the company. This notice pay is recovered/ deducted from the salary payable to such employee. Under the tax laws, any payment received from the past/ present or future employer is taxable as salary and it is taxable on due basis.
Normally a company will pay you up to the 30/31st on the 25th. So when you resign they will pay out your monies/salary on the last working day of the month including your leave due minus any money owing them.
If the employee doesn't give proper notice and you choose to hold her to the contract, then the contract terminates after the full period of the notice. You will get your salary as you get in normal course. But, if you resign without serving the notice period, then the company is entitled to recover the notice pay.
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