The holiday records rule most UK employers missed (and how to get ahead of it)
Most HR and payroll teams spent early 2026 preparing for the changes everyone was talking about: day-one sick pay and the new Fair Work Agency. A quieter change slipped in alongside them, and it probably matters more to your admin than either of those.
It’s about holiday records. If yours live in a mix of spreadsheets, manager diaries and “just ask Sarah in payroll”, this post is for you.
What changed on 6 April 2026?
Until April, employers in Great Britain had no general legal duty to keep records of the holiday their workers took. That changed on 6 April 2026, when the Employment Rights Act 2025 brought in a requirement to keep adequate records showing compliance on holiday and holiday pay. Lewis Silkin
The change caught a lot of people off guard. It had not appeared in the government’s implementation roadmap or in the Department for Business and Trade’s 2026 timeline, so its arrival that April was unexpected. DAC Beachcroft
The rules also have real consequences. Acas confirms that employers now have to keep annual leave and holiday pay records for at least six years. Failing to keep adequate holiday records is a criminal offence and can lead to a fine. AcasBaker McKenzie
What counts as “adequate”?
This is where it gets awkward. The Act lets employers keep records in whatever format they reasonably think fit, but there’s no clear guidance yet on what will actually be good enough. Lawyers are advising employers not to wait for guidance. The duty applies whether or not guidance has been published. Lewis SilkinLaw365
In practice, an adequate record should be able to answer these questions for any worker, for any year in the last six:
- How much statutory leave were they entitled to, and how was that worked out?
- How much did they take, and when?
- What were they paid for it, and does that figure include the right elements of variable pay?
- Was any leave carried over or paid in lieu?
If you can’t answer those from one place in a few minutes, you have a gap.
Why irregular hours staff make this harder
If you run shifts, you probably have staff whose hours change week to week. For leave years starting on or after 1 April 2024, irregular hours and part-year workers build up holiday at 12.07% of the hours they work in each pay period, up to a maximum of 28 days a year. The figure comes from 5.6 weeks of leave divided by the 46.4 weeks left in the year, which works out at roughly seven minutes of holiday for every hour on shift. phbrosterelf
That’s simple enough for one person. Across 150 people on variable rotas, with overtime, late clock-outs and shift swaps, a spreadsheet becomes a liability. One wrong formula, repeated every pay period for six years, is now something you might have to explain to an inspector.
Who will be checking?
The Fair Work Agency was set up on 7 April 2026. It’s expected to be able to investigate employers, inspect workplaces, issue civil penalties for underpayment and represent workers in legal proceedings. Employment advisers expect it to investigate without waiting for a worker to complain, and to be able to recover up to six years of underpayments. Howes PercivalHalborns
How Time & Attendance software closes the gap
The fix isn’t a better spreadsheet. It’s making sure holiday records are created automatically from the same data you already use to pay people.
With a proper Time & Attendance system such as UKG Pro Workforce Management:
- Accruals calculate themselves. Worked hours from the clock feed straight into holiday accrual, including the 12.07% method for irregular hours staff.
- Requests and approvals leave a trail. Every booking, approval and cancellation is timestamped, which is exactly what you want if someone asks questions in 2031.
- Payroll and holiday tell the same story. Because time data flows into payroll, the hours behind holiday pay match the hours you actually paid.
- Managers see balances in real time. Fewer “how much holiday do I have left?” emails for HR.
A quick self-check
Pick three workers at random, one salaried, one part-time and one on variable hours. Try to produce their holiday entitlement, leave taken and holiday pay for the 2024/25 leave year. Time how long it takes. If it’s more than ten minutes, or needs more than one system, that’s worth fixing now.
Frequently asked questions
Do all UK employers need to keep holiday records now?
Yes. Since 6 April 2026, employers in Great Britain must keep adequate records of annual leave and holiday pay, and hold them for at least six years.
Can I keep holiday records in a spreadsheet?
The law lets you choose a reasonable format, so a spreadsheet isn’t automatically non-compliant. The risk is accuracy and consistency over six years, especially for variable hours staff.
How is holiday calculated for zero hours workers?
For leave years starting on or after 1 April 2024, irregular hours and part-year workers accrue holiday at 12.07% of hours worked each pay period, capped at 28 days a year.
Who enforces holiday pay rules?
The Fair Work Agency, which launched on 7 April 2026, is expected to take on enforcement of holiday pay.
Ready to see it in action? Book a demo with Snow Technology and we’ll show you how UKG Pro Workforce Management keeps your holiday records audit-ready. Book a demo
This article is general guidance, not legal advice.
References
- Acas, Employment Rights Act 2025: https://www.acas.org.uk/employment-rights-act-2025
- Lewis Silkin, Failure to keep adequate holiday records will become a criminal offence (March 2026): https://www.lewissilkin.com/insights/2026/03/27/failure-to-keep-adequate-holiday-records-will-become-a-criminal-offence-from-april-2026
- Baker McKenzie, New record-keeping obligations for annual leave (April 2026): https://www.bakermckenzie.com/en/insight/publications/2026/04/united-kingdom-new-record-keeping-obligations-for-annual-leave
- DAC Beachcroft, New duty to keep holiday records: https://www.dacbeachcroft.com/en/What-we-think/New-duty-to-keep-holiday-records-comes-into-force-on-6-april-2026
- Howes Percival, New duty to keep annual leave records: https://www.howespercival.com/articles/employment-rights-act-2025-new-duty-to-keep-annual-leave-records-now-coming-into-force-in-april-2026/
- PHB, Holiday pay and entitlement reforms in 2024: https://phb.co.uk/article/holiday-pay-and-entitlement-reforms-in-2024