Policy
Not included in the original draft of the Employment Rights Bill, but on 5 March 2025 the Government introduced an amendment that will require employers 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 amending the employment business definition into force. Firm details on timing have not yet been provided but it is anticipated to be implemented by 2026.
Await developments.
Sources
5 March 2025 amendments to the Employment Rights Bill.