Many of us in the past have tracked holiday informally through emails or spreadsheets, with no consistent approach that now needs to change.
From 6 April 2026, employers must be keeping detailed and accurate records of their staff’s annual leave and holiday pay.
These records must be retained for six years, and failure to comply may result in criminal sanctions, including unlimited fines.
Again, this represents a major shift for businesses as so many have relied on an informal process such as oversight for holiday records, but this approach is no longer sufficient.
Employers must be able to clearly demonstrate that they are meeting the requirements, and this includes maintaining accurate records showing:
And all of these records must be retained for six years.
The ERA 2025 introduced the Fair Work Agency a new single enforcement body.
Its role is to bring together enforcement of key employment rights including:
The Fair Work Agency has significant powers, including the ability to:
Poor or incomplete record keeping will not just be an administrative issue, it could be a serious legal risk for your business.
• All workers are entitled to 5.6 weeks’ paid holiday per year, including bank holidays
• Holiday entitlement applies to workers, not just employees
• Workers with irregular hours may accrue holiday and should receive pay for this
It is important to ensure that employees are taking their holiday and that you are encouraging them throughout the year to take their leave, not least from a wellbeing perspective.
Encouraging employees to take their holiday is essential and will benefit everyone as it will:
• Help prevent burnout
• And should increase your productivity
It helps you to:
Why not consider adopting a digital HR Platform, such as our partner Breathe?
Holiday record-keeping is no longer just an administrative process – it is regulated, enforceable and high risk if ignored.
Metro HR can help you with this and help you to introduce a compliant system through our partner, Breathe.
To discuss how we can support you, get in touch today by emailing us at hello@metrohr.co.uk – or click the button below to book a call.
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