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New duty to retain annual leave records

From April 6th 2026 employers now also have a duty to keep records in relation to annual leave and holiday pay. Whilst this sounds like good practice anyway, this is actually the first time there has been an employment law duty to do so.

 

This can be done in any format the employer reasonably considers appropriate, but the information must be kept for six years. The information that must be recorded includes:

 

  • Ordinary and additional annual leave

  • Annual leave carried forward from previous years

  • Details of holiday pay, including which pay elements have been included or excluded

  • Any payments in lieu of annual leave, including for carried‑over leave.


It’s been reported that employment lawyers spotted the measure in legislation published last week. Reg 3(8) of the regulations brings into force Section 35 of the Employment Rights Act 2025; a requirement to keep records relating to annual leave. under the Working Time Regulations 1998 (WTR) from 6 April 2026.

 
 
 

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