03/06/2026
From 6 April 2026, businesses are legally required to keep detailed records of employee annual leave and holiday pay for a minimum of six years.
It wasn't on the government's published timetable, which means many payroll and finance teams haven't planned for it.
Records must cover:
→ Ordinary and additional annual leave
→ Leave carried forward from previous years
→ Holiday pay, including which elements are included or excluded
→ Payments in lieu of annual leave
Non-compliance is a criminal offence and fines can reach up to £20,000 per employee.
If your payroll process hasn't been reviewed since April, now is the time.