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Thanks for your question.
Your employer may either let you work your notice period (and get paid for it) or offer to pay you in lieu of notice (if such a right is not contained in your contract - if it was h could simply pay you and that would be that). Of course, he may also suggest that you just leave now and don't get paid, but it is entirely up to you whether you wish to do this.
He cannot just not pay you, if he does then you will be able to sue him.
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What happens if he makes life even more difficult in the hope that I will just go.
Raise a grievance, formalise your issues with him. Get it on record and he will think twice. He is the one who has to carry on working there after all and having grievances flying around from people you manage does not look favourable.
Keep throwing "you can pay me in lieu if you like" at him and he will either put up or shut up.
Ultimately, it might not be a nice place to work you notice but you will get paid for it or paid in lieu for your notice period if you can stomach some awkwardness.
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