Holiday Records: What Employers Need to Know from April 2026

From 6 April 2026, significant changes to UK employment law will come into force under the Employment Rights Act 2025. These changes introduce a new legal obligation for employers to maintain detailed and accurate records relating to statutory annual leave and holiday pay.

What is changing?

A new provision will be added to the Working Time Regulations 1998, requiring employers to keep sufficient records to demonstrate compliance with statutory holiday entitlement rules. This applies not only to leave taken, but also to how holiday pay is calculated and paid.

What records must be kept?

Employers will need to ensure their records clearly show: The amount of statutory annual leave taken by each worker, including both the core four-week entitlement and any additional statutory leave. How leave is calculated for workers with irregular hours. The calculation of holiday pay, including payments due on termination of employment. These records must be retained for a minimum of six (6) years.

Why does it matter?

Failure to comply with these requirements is not merely an administrative oversight—it may amount to a criminal offence and could result in financial penalties. This marks a notable shift towards stricter enforcement in this area.

Practical steps for employers

In light of these changes, employers should take proactive steps to review their current systems and processes. Key considerations include:

• Assessing whether existing HR and payroll systems adequately capture the required data

• Implementing clear and consistent procedures for recording leave and calculating holiday pay

• Reviewing how variable pay elements, such as overtime or commission, are factored into holiday pay calculations. Establishing robust document retention policies to meet the six-year requirement

Final thoughts

These reforms underscore the importance of transparency and accuracy in managing employee entitlements. By taking early action, employers can reduce legal risk and ensure they are well-prepared ahead of April 2026.

If you would like advice on reviewing your current practices or implementing compliant systems, seeking professional legal guidance is recommended. Please feel free to reach out our employment team for further information at enquiry@gulegal.org or info@gulegal.org .