Under the ERA 2025, employers will be required to keep records to demonstrate compliance with certain obligations in respect of 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 ERA 2025.
This was brought into force from 6 April 2026.
A consultation was launched on 30 June 2026 seeking views on the Fair Work Agency’s approach to enforcing holiday entitlement and pay (closing on 22 September 2026).