The term Notice Pay has not been defined by any Labour Act. If you refer ID Act, there is mention about “notice” to be served by an employer to retrench/ discharge an employee or close down an undertaking.
Even in these cases, payment in lieu of notice means Basic Wages + Dearness Allowance. This is applicable to those who are covered under ID Act.
Others who are not covered under ID Act are solely governed by the terms and conditions of the appointment of the concerned employee and as and when modified by the company from time to time.
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