[UK] Failing to keep holiday records becomes a criminal offence on April 6

Employment law changes are coming into force in the UK this month, and the publication of the latest commencement regulations - which give effect to the relevant provisions of the Employment Rights Act 2025 - has revealed a last-minute development, Local Government Lawyer reports.

The new statutory duty on employers to keep records of workers’ annual leave and holiday pay is now due to come into force on April 6, and failure to comply with it will amount to a criminal offence.

Before this, though it was good practice to maintain holiday leave records, there was reportedly no legal duty to do so. The Working Time Regulations only required employers to keep records of working time.  From April 6, 2026, however, employers will be legally obliged to maintain adequate records of annual leave entitlement and pay.

The change wasn’t flagged in the Government’s roadmap for implementing the new Employment Rights Act. Now employers have less than one working week (with days lost to Easter Bank Holidays) to prepare.

Adequate records must document that:

• Workers have been notified of and allowed to take their annual statutory holiday entitlement (5.6 weeks)

• Workers were correctly paid for this leave, including those on irregular hours or part-year workers

• Workers were correctly paid for accrued but untaken leave on termination of employment, including any leave carried over from the previous holiday year

Records may reportedly be kept in a manner and format that the employer “reasonably thinks fit”, but they must be kept for six years.

Failure to comply with this duty will amount to a criminal offence and result in a fine, which could be unlimited.  Enforcement is expected to be carried out by the new Fair Work Agency, which will be established on April 7.

The Fair Work Agency is understood to have the power to demand that any underpayment it discovers be paid and to impose an additional penalty of up to £20,000 per underpaid individual.

According to Local Government Lawyer, employers should:

• Audit holiday and payroll systems to ensure they capture the correct information and that this can be safely retained for six years.

• Immediately implement a clear record‑keeping process if one isn’t already in place.

• Consider how they track and ensure that employees are taking their holiday

• Review holiday pay calculations to ensure correct payments have been made.

• Ensure HR and payroll staff and managers are trained and up to date on the new requirements.

• Update any relevant policies to reflect new record-keeping practices.

• Prepare for potential Fair Work Agency inspections.

Source: Local Government Lawyer

Employment law changes are coming into force in the UK this month, and the publication of the latest commencement regulations - which give effect to the relevant provisions of the Employment Rights Act 2025 - has revealed a last-minute development, Local Government Lawyer reports.

The new statutory duty on employers to keep records of workers’ annual leave and holiday pay is now due to come into force on April 6, and failure to comply with it will amount to a criminal offence.

Before this, though it was good practice to maintain holiday leave records, there was reportedly no legal duty to do so. The Working Time Regulations only required employers to keep records of working time.  From April 6, 2026, however, employers will be legally obliged to maintain adequate records of annual leave entitlement and pay.

The change wasn’t flagged in the Government’s roadmap for implementing the new Employment Rights Act. Now employers have less than one working week (with days lost to Easter Bank Holidays) to prepare.

Adequate records must document that:

• Workers have been notified of and allowed to take their annual statutory holiday entitlement (5.6 weeks)

• Workers were correctly paid for this leave, including those on irregular hours or part-year workers

• Workers were correctly paid for accrued but untaken leave on termination of employment, including any leave carried over from the previous holiday year

Records may reportedly be kept in a manner and format that the employer “reasonably thinks fit”, but they must be kept for six years.

Failure to comply with this duty will amount to a criminal offence and result in a fine, which could be unlimited.  Enforcement is expected to be carried out by the new Fair Work Agency, which will be established on April 7.

The Fair Work Agency is understood to have the power to demand that any underpayment it discovers be paid and to impose an additional penalty of up to £20,000 per underpaid individual.

According to Local Government Lawyer, employers should:

• Audit holiday and payroll systems to ensure they capture the correct information and that this can be safely retained for six years.

• Immediately implement a clear record‑keeping process if one isn’t already in place.

• Consider how they track and ensure that employees are taking their holiday

• Review holiday pay calculations to ensure correct payments have been made.

• Ensure HR and payroll staff and managers are trained and up to date on the new requirements.

• Update any relevant policies to reflect new record-keeping practices.

• Prepare for potential Fair Work Agency inspections.

Source: Local Government Lawyer