UK Employers Must Keep Holiday Records from April 2026 Under New Employment Rights Act
Employers across the United Kingdom will face a new legal duty to maintain records proving they have given workers their full holiday entitlements, starting on 6 April 2026. The requirement, introduced by Section 35 of the Employment Rights Act 2025, amends the Working Time Regulations 1998 by inserting a new regulation 16B.
From that date, every employer must keep “adequate” records showing compliance with key holiday rules. These include the basic four weeks’ paid annual leave under regulation 13(1), the additional 1.6 weeks under regulation 13A(1), special provisions for irregular-hours and part-year workers under 15B(2), and the right to take leave under regulation 16(1). Records must also demonstrate that holiday pay has been correctly calculated under regulations 14(2), 14(6) and 15E(2).
The records must be retained for six years from the date they are made. Crucially, there is no requirement to keep records dating back before 6 April 2026. Employers can choose any “manner and format” they reasonably consider suitable, provided the records are sufficient to prove compliance for every eligible employee and worker, including those on zero-hours, part-time or irregular contracts.
What the records must show
The records need to be adequate to demonstrate that the employer has met its obligations under these specific regulations:
- Regulation 13(1) — Basic 4 weeks’ (20 days for a 5-day week) annual leave for most workers.
- Regulation 13A(1) — Additional 1.6 weeks’ leave (often covering bank holidays or extra entitlement).
- Regulation 15B(2) — Correct holiday accrual for irregular-hours and part-year workers (including the 12.07% method or rolled-up holiday pay).
- Regulation 16(1) — The right for workers to actually take their annual leave (not just accrue it).
- Regulations 14(2) & 14(6) — Correct calculation and payment of holiday pay (usually based on a 52-week rolling average including overtime, commission, etc.).
- Regulation 15E(2) — Proper handling of holiday pay on termination (payment in lieu of untaken leave).
In practice, this means keeping evidence of:
- Holiday entitlement for each worker (including how it is calculated for different contract types).
- Holiday taken — dates and amount of leave actually used each year.
- Holiday carried forward — any unused leave rolled over (e.g., due to sickness or maternity).
- Holiday pay calculations — how much was paid for each period of leave, which pay elements were included or excluded, and supporting evidence (e.g., 52-week average earnings breakdown).
- Accrual or rolled-up payments — for irregular or zero-hours workers (showing the 12.07% addition or separate pot).
- Payments in lieu on termination, including any carried-over leave.
- Opportunity to take leave — evidence that workers were able to book and take their statutory holiday (not just a “use it or lose it” policy that prevents booking).
Records should cover all workers, not just employees — including part-time, zero-hours, irregular-hours, agency, and casual staff. Zero-hours workers are fully entitled to holiday; many employers have historically got this wrong
The change comes amid widespread evidence of non-compliance. Government figures indicate that more than 1.8 million workers are currently denied their holiday pay rights, while millions more receive less than they are legally entitled to or are not given a proper opportunity to take leave. Common problems include zero-hours staff being told they have no holiday rights, failure to protect entitlements during maternity or sickness absence, and outdated “use-it-or-lose-it” policies that make it difficult for staff to book time off.
Holiday entitlement for most workers remains 5.6 paid weeks per year (4 weeks under regulation 13 plus 1.6 weeks under 13A). For those with regular hours, pay is based on a rolling 52-week average that includes overtime and commission. Workers with irregular hours or part-year contracts can use the 12.07% accrual method or rolled-up holiday pay introduced in 2024, but employers must still prove they have correctly applied the rules.
Enforcement will be strengthened by the new Fair Work Agency, which launches on 7 April 2026. Failure to keep the required records will become a criminal offence under the amended regulation 29 of the Working Time Regulations. The Agency will have inspection powers similar to those used for national minimum wage enforcement, shifting much of the burden from individual tribunal claims to proactive state action.
Business groups have been warned that holiday schemes dating back before the original Working Time Regulations must now be fully aligned with current law. Union agreements or industry-wide schemes do not override statutory minimums. Employers are being urged to review their payroll systems, update policies for variable-hour staff, and ensure clear processes exist for booking leave before the April deadline.
The government says the new record-keeping duty will make it easier to protect the holiday rights of millions of workers while giving compliant employers a clear way to demonstrate they are meeting their obligations. With the six-year retention period and the Fair Work Agency’s expanded powers, businesses that ignore the change risk significant penalties and enforcement action.