Employers must keep records of annual leave and holiday pay.
Important: This is a new law. It applies from 6 April 2026.
Employers must record:
- holiday taken
- holiday carried over from previous years
- holiday pay
- any payments in lieu of holiday – for example, pay for unused holiday when someone leaves a job
For holiday pay, employers must give details of what's included. For example, bonuses or commission.
Employers must keep records for at least 6 years from the date they were made.
How to keep records
Employers can keep holiday records in any format they think is reasonable. For example, an online management system or a spreadsheet.
Employers might already have something that records holiday information. For example, the payroll system they use. They must make sure this includes all the information they're required to keep by law.
Data protection
Employers must keep records in line with UK GDPR.
Find out more about keeping employment records from the Information Commissioner's Office (ICO)
If an employer does not keep records
If a worker does not think their employer is keeping holiday records, they should raise the problem.
It's usually best to raise a problem informally first by talking with the employer.
If this does not resolve the problem, the worker can raise a grievance. A grievance is where someone makes a formal complaint to their employer.
Enforcement by the Fair Work Agency
If an employer cannot prove they have holiday records, it could be a criminal offence. The Fair Work Agency (FWA) will be given enforcement rights.
The maximum penalty is likely to be unlimited fines. Other enforcement action might include:
- demands for underpayments of holiday pay
- additional financial penalties