Notice pay
Pay in place of a notice period: owed to an employee who is let go without working it, or by one who leaves without serving it.
A notice period is the time an employee or employer must give before ending employment. If it is not worked, notice pay is the money that stands in for the missing time.
The rule comes from the contract and the law that applies. Treat it as a line in the final settlement, with the days counted and the rate stated, so both sides can see how it was reached.
General information, not tax or legal advice.
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