This change is part of a wider push toward greater transparency and enforcement of employment rights. While holiday entitlement has always been a legal right, the focus is now shifting to evidence and accountability.

What Has Changed?

Employers are now legally required to keep clear and accurate records of annual leave for their workers.

These records must show:

• The amount of holiday an employee is entitled to

• The amount of leave taken

• Whether the employer has complied with legal obligations (including payment)

Crucially:

These records must be retained for 6 years

Why This Matters

Previously, disputes about annual leave often came down to one person’s word against another’s.

For example:

• Employees claiming they were not allowed to take leave

• Disagreements about whether holiday was paid

• Uncertainty around how much leave remained

This new requirement changes that.

Employers must now be able to prove compliance and not simply assert it.

What This means for Employees

For workers, this is a significant shift in protection.

If a dispute arises about:

• Whether you were allowed to take holiday

• Whether you were paid correctly

• How much leave you had available

There should now be a clear record to rely on.

This makes it much easier to:

• Challenge unlawful practices

• Raise grievances with confidence

• Bring claims where necessary

What This means for Employers

Employers need to take this seriously.

This is not just an administrative task—it is a legal obligation.

At a minimum, you should:

• Implement a system for tracking leave (digital or manual)

• Ensure records are accurate and regularly updated

• Retain records for the full 6-year period

There is no prescribed format, but the records must be:

• Clear

• Complete

• Accessible if required

Failure to keep proper records could lead to:

• Difficulty defending tribunal claims

• Regulatory scrutiny

• Potential penalties

How Fairwork Legal Can Help

Whether you are an employer reviewing your systems or an employee facing issues with holiday entitlement, getting clear advice early can prevent problems escalating.

• For employers: we can help you implement compliant, practical systems

• For employees: we can assess whether your rights have been breached and advise on next steps