Employer’s new duty to keep adequate holiday records
Kate Knapton, 18th May, 2026
Changes in employment law are coming thick and fast. One change that may have slipped in unnoticed by many employers is the new legal duty to keep records of annual leave and holiday pay. The change came in from April 2026 and records must be kept for six years.
What employers must record
Employers must keep records that show they are complying with the law on annual leave and holiday pay. This includes keeping records on:
- Annual leave entitlement;
- Annual leave entitlement for people working irregular hours;
- Holiday pay; and
- Payment in lieu of holiday when employment ends.
How do employers keep these records and how long for?
Employers must keep these records to show that they are complying with the law on annual leave and holiday pay.
Employers can keep records in any way they see fit.
The employer must keep the records for six years from the date each record is created
Consequences of not keeping records
Failure to comply with the requirement to keep adequate holiday records is a criminal offence and may be punished by a fine.
Enforcement
The Fair Work Agency was established on 7 April 2026 under the Employment Rights Act 2025. It will be the Fair Work Agency that makes sure employers comply with the duty to record annual leave and holiday pay.
Next steps
Employers should check the systems they use to record annual leave and holiday pay.
- Can those systems show that the employer is complying with the law?
- Can those systems retain the information it holds for at least six years?
Employees can have access to the information that employers hold on them including their holiday record.
If you have any questions on this or any other employment matter please contact our Employment Team: Ted Flanagan - Partner/Head of Employment, Kate Knapton - Partner and Nathalie Stewart - Associate
