6th April 2026 change - Holiday records mandatory records management

From 6th April 2026, employers have a legal duty to maintain detailed records of employee annual leave and holiday pay and all organisations must take immediate action to avoid legal and financial risk. 

So...what records must I keep? 

Employers must maintain adequate records to demonstrate compliance with workers’ holiday rights. This includes: 

• Annual leave taken (including carry-over from previous years) 

• Workers’ entitlement to statutory ordinary and additional leave (5.6 weeks in total each leave year) 

• Holiday pay calculations • What pay elements have been included or excluded (e.g. overtime, commission) 

• Payments made in lieu of untaken holiday upon termination (including for carried-over leave) 

• Holiday arrangements for irregular hours and part-year workers 

The holiday records don’t need to follow a set format and can be kept in any HR system or record that the employer chooses, as long as they are clear, and accessible. 

How long should I keep these records? 

Records must be retained by the employer for a minimum of six years from the date that they are created. 

Why does this matter? 

Holiday record keeping has historically been relatively informal for some employers.

Employers must now actively evidence that they are meeting their legal obligations as without adequate records, employers may face: 

• Holiday pay claims.

• Backdated financial liability.

• Increased regulatory scrutiny.

• Inability or difficulty when defending Employment Tribunal claims.

  
  

Failure to comply with the record-keeping requirement is a criminal offence, which can result in a fine.

How will this change be enforced? 

The new duty falls under “relevant labour market legislation” and will be enforced by the Fair Work Agency (FWA), which launched on 7 April 2026. The FWA is expected to have wide enforcement powers, including the ability to inspect records and investigate compliance. This reflects a broader move towards stricter, evidence-based enforcement of employment rights.

What should I do now? 

To reduce risk and ensure compliance, employers should take the following steps: 

• Audit your current systems/records - review how annual leave and holiday pay are recorded across HR and payroll systems. 

• Check all holiday pay calculations and ensure that you are able to evidence how holiday pay is being calculated, including the calculation of variable pay (e.g. overtime, commission). 

• Identify and address any gaps and look for inconsistencies, absent data, or informal processes. 

• Ensure that records are being securely stored and can be accessed for the minimum period of six years retention requirement. 

• Make sure that your in-house HR administrators, payroll, and managers understand the new requirements and their role in maintaining and retaining compliant records.