WFM UK | HR UK: Holiday Record Keeping

Overview

The Employment Rights Act 2025 introduces new obligations for employers relating to the retention of holiday records. The commencement date for this requirement was previously unknown but has now been confirmed as 6th April 2026. This article explains what has changed, what it means for businesses and how Fourth is assisting customers in adapting to these regulatory changes.

What has changed?

From 6th April 2026, all employers in Great Britain are legally required to keep adequate records demonstrating compliance with their legal requirements relating to holiday entitlement and pay. This is a new statutory obligation. Previously, while it was considered good practice to keep such records, there was no specific legal requirement to do so.

Employers need to keep records relating to:

• Each worker's holiday entitlement, including any additional leave
• Holiday entitlement for irregular-hour or part-year workers
• Holiday pay for each instance of leave taken
• Any carry-over of unused holiday
• Any payments made in lieu of untaken holiday when an employee leaves

As of 6 April 2026, these records must be kept for six years from the date they were created and must cover all eligible workers, including those on full-time, part-time, or irregular-hours contracts.

Fair Work Agency

Alongside this new record-keeping requirement, the government has established the Fair Work Agency (FWA), which launched on 7th April 2026. The FWA brings together several existing enforcement bodies into a single agency responsible for ensuring employers comply with a range of employment rights, including holiday entitlement and holiday pay.

It is worth noting that for most employers who already comply with the law, the FWA is intended to provide better access to guidance and support rather than increased enforcement risk. The FWA will initially focus its efforts on areas such as minimum wage and agency worker rules, before turning its attention to holiday pay enforcement in due course.

For full details of the Fair Work Agency, its remit, and its enforcement priorities, visit the official GOV.UK page at www.gov.uk/government/organisations/fair-work-agency.

Fourth's Response

Fourth already holds the underlying data that feeds into holiday calculations and payments. We are currently reviewing how best to make this data available to customers in a clear, accessible and self-service way, so that if records are ever needed for an audit or inspection, they can be produced quickly and with confidence. A further update will follow in due course.

The information provided herein is for informational purposes only. It does not constitute legal, tax, accounting, or other professional advice. It describes functionality and configuration options available within Fourth's solutions and services. The appropriate settings for your organisation will depend on your specific circumstances and requirements, and Customers remain solely responsible for all decisions relating to the configuration and usage of Fourth's solutions and services. The information reflects Fourth's understanding of applicable laws and regulations at the time of publication and may not reflect subsequent changes. Customers should seek independent professional advice regarding their specific compliance requirements.