Policy
Employers will be required to keep records to demonstrate compliance with certain obligations in respect annual leave and pay under the Working Time Regulations 1998.
Like other requirements in respect of record keeping for working time, employers must keep records that are ‘adequate’ and retain them for six years. The records must be created, maintained and kept by employers in such manner and format as the employer reasonably thinks fit.
If an employer fails to comply with this duty it will be an offence, punishable by a fine. This will also become part of the enforcement remit of the Secretary of State which will be delegated to the new FWA enforcement agency once established.
Timing and developments
Included in the Employment Rights Bill following amendments on 5 March 2025.
Commencement regulations will be required to bring the provision into force. Firm details on timing have not yet been provided in the Government’s roadmap – but we anticipate that this would be earlier in the Government’s roadmap.
Await developments.
Sources
5 March 2025 amendments to the Employment Rights Bill.