New Holiday record keeping rules: Are you ready for April 2026?

The UK’s Employment Rights Act 2025 continues to reshape employer obligations — and one of the most quietly significant changes comes into force from 6 April 2026.

From this date, employers will be legally required to keep detailed records of annual leave and holiday pay for a minimum of six years. This new duty, introduced through amendments to the Working Time Regulations 1998, marks a major shift in compliance expectations and aligns holiday pay enforcement with other high‑risk areas such as National Minimum Wage.

So the question is: Are your holiday records audit‑ready?

What’s Changing?

Under the new legislation, employers must keep “adequate records” to demonstrate full compliance with statutory holiday entitlements and pay.

These records must clearly show:

⚓ The amount of annual leave taken
⚓ Statutory leave carried forward from previous years
⚓ How holiday pay has been calculated
⚓ What pay elements are included (for example overtime, commission or bonuses)
⚓ Any payments in lieu of untaken holiday on termination

Records must be retained for at least six years from the date they are created and must be available if requested by enforcement bodies.

There is no prescribed format — employers can use HR systems, payroll software or spreadsheets — but records must be complete, accurate and accessible.

Why This Matters More Than Ever

Holiday pay remains one of the most complex and high‑risk areas of employment law. CIPD commentary has consistently highlighted that errors often occur where workers have:

⚓ Variable hours
⚓ Overtime or commission
⚓ Irregular or part‑year working patterns

The new six‑year record‑keeping requirement means Employers must now be able to prove compliance retrospectively, not just apply policies correctly in theory.

Failure to keep adequate records can now result in criminal liability, including unlimited fines, enforced by the newly established Fair Work Agency.

No Grace Period — Immediate Action Required

One of the most challenging aspects of this change is the lack of transitional provisions. The duty applies immediately to records created from 6 April 2026 onwards.

That means employers must:

⚓ Ensure systems are already capturing the right data
⚓ Confirm retention periods meet the six‑year requirement
⚓ Be able to retrieve historic holiday and pay records quickly
⚓ Clearly evidence holiday pay calculations, especially where pay varies

What Should Employers Be Doing Now?

CIPD‑aligned best practice and ACAS guidance point to a clear action plan:

⚓ Audit current holiday and payroll records
⚓ Check retention settings across HR and payroll systems
⚓ Review holiday pay calculations for accuracy and consistency
⚓ Train managers and payroll teams on the new legal requirements
⚓ Update internal policies and record‑keeping procedures

This change isn’t just administrative — it’s about defensibility.

How Foreshore HR Can Help

At Foreshore HR, we’re already supporting organisations across Hampshire and beyond to prepare for the 2026 legislative changes.

We can help you with:

⚓ Holiday record‑keeping audits
⚓ Holiday pay calculation reviews
⚓ Offering HR software to ensure compliance
⚓ Policy and process updates
⚓ Practical guidance tailored to your workforce structure

Need Support?

If you’re unsure whether your current systems meet the new requirements or want peace of mind before enforcement activity ramps up then we’re here to help.

Email: contacthr@foreshorehr.com
Website: www.foreshorehr.co.uk