The Employment Rights Act 2025 has introduced a host of changes for UK employers and one of the most overlooked, which covers annual leave record-keeping, is already live.
Since 6 April 2026, businesses are legally required to keep detailed annual leave and pay records for at least six years.
Section 35 of the Employment Rights Act 2025, brought into force by Regulation 3(8) of the Act’s commencement regulations, imposes a clear statutory obligation to maintain accurate, complete records of employees’ annual leave entitlement and associated pay for a minimum of six years.
What makes this requirement particularly notable is how quietly it has been introduced. It does not even appear in the Department for Business and Trade’s published implementation timeline, meaning many employers remain unaware that the obligation is already in force.
Even if your business currently tracks leave and pay in some form, it is essential to review whether your records meet the new legal threshold.
Your records should clearly show:
The newly established Fair Work Agency (FWA), which became operational on 7 April 2026, has been tasked with overseeing compliance with annual leave obligations and other employment rights.
While the Government has indicated that enforcement timescales will be confirmed in due course, businesses should not interpret this as a grace period and should assume active compliance checks could begin at any time.
Employers must now ensure that their payroll systems can capture the required data accurately and retain it for the full six-year period.
