In our recent update, we accidentally left off the 6 April 2026 change in relation to holiday records. It was a late addition to the line up but one you definitely need to know about!

In this blog you’ll find:

• a bumper update on this one specific change, followed by
• an invitation to a complimentary online webinar on the major changes coming to employment law over the next 12 months. 

Holiday records

There is now an extended positive duty on employers to maintain adequate records of annual leave and holiday pay, for a minimum of six years from the date the record is made. 

Employers must keep clear and complete records of: 

• Holiday taken by individuals

• Holiday carried over from previous years

• Holiday pay, including calculations in relation to overtime, commission and bonuses

• Payments in lieu of holiday, such as pay for unused holiday when someone leaves 

How you do it is up to you; there is no prescribed manner in which the records should be kept.

Employers must be able to demonstrate compliance with these new rules if asked by enforcement bodies, including the new Fair Work Agency.

In the event an employer cannot demonstrate that they have maintained adequate records, they could be found criminally liable. Potential consequences include:

• Unlimited fines

• Orders to repay underpaid holiday pay

• Additional financial penalties

Key takeaway for employers?

Holiday record‑keeping is now a legal obligation with serious and expensive consequences for non‑compliance. Whilst many employers were previously making some records of staff holiday, they should be: 

• Ensuring all required information is being recorded

• Checking records are stored securely and retained appropriately

• Reviewing current holiday and payroll systems

• Training managers and payroll staff on the legislation updates 

Complimentary webinar

Do you want to understand the other changes to HR and employment law which are coming up over the next 12 months?

Join us for a free, online webinar where our Employment Law team will break down the legislation updates under the Employment Rights Act 2025 and share simple steps to remain compliant.

Date: 14 May 2026
Time: 12:30PM

What we’ll cover:

• Unfair dismissal

• Zero and low hours contracts

• Third party and sexual harassment

• Fire and rehire practices (changing terms and conditions)

• Flexible working requests

• Non-disclosure agreements

Sign up using the following link:

Employment Rights Act 2025: How these changes impact your business | Join meeting in Teams

If you require any help or assistance regards this topic or anything else employment law related, please contact our Employment Law Team.