Question: 

An employee left our employment on Friday 15th January. The employee asked for his P45 to be issued to him on his leaving date as he was starting his new job on Monday 18th January and needed it to give to his new employer. Our employees are paid on the 25th of each month and we normally only issue P45s after the employees have received their final payment.

Is the employee entitled to request his P45 on his date on leaving, or can I wait and issue it following the pay date?   

Answer: 

Employers should finalise all payments due to an employee, and in accordance with the PAYE Regulations, a P45 should be issued to an employee immediately on cessation. In the above example, the employee is correct to request his P45 on his date of leaving.