Well, that was unexpected.
There’s been a quiet but significant shift in employment law that hasn’t had the airtime it probably should have.
From 6 April, employers now have a legal duty to keep clear and accurate records to demonstrate compliance with the Working Time Regulations.
This isn’t just good practice anymore, it’s a legal requirement with real consequences.
What do employers now need to record?
This goes further than just tracking who’s on holiday.
You need to be able to evidence:
- Holiday entitlement, including any enhanced contractual leave
- Any leave carried forward
- How holiday pay is calculated and what’s included
- Any payments made in lieu of holiday, for example on termination
This applies to all workers, not just full-time employees.
That includes part-time staff, irregular hours workers and zero-hours workers.
The key point many businesses will miss is that these records must be kept for 6 years.
What happens if you don’t comply?
This is where it gets serious.
Failure to keep adequate records is now a criminal offence and can result in a fine.
Enforcement is expected to sit with the new Fair Work Agency launching in April 2026, although full enforcement powers are still being finalised.
This is clearly the direction of travel, more enforcement, more accountability and a greater need for evidence.
A quick note on Statutory Sick Pay (SSP)
You may have seen headlines about SSP changes, particularly the removal of waiting days.
These changes haven’t been formally included in this set of regulations.
However, they are still widely expected to come into force, so employers should keep a close eye on updates over the coming weeks.
What should employers be doing now?
This isn’t something to leave.
There are some immediate steps every business should be taking:
- Review what you currently record
- Identify any gaps, especially around holiday pay calculations
- Check your systems can store records for 6 years
- Tighten up processes for irregular and zero-hours workers
For many SMEs, this is where things start to fall down, particularly if you are relying on spreadsheets or manual tracking.
The bottom line
This change isn’t about creating more admin for the sake of it.
It is about evidence.
When it comes to employment law, it is not enough to say you are compliant, you need to prove it.
If you cannot evidence how you have calculated and managed holiday, you are exposed.
If you have not got a tracking system or HR system in place, now is the time to do this. Book a call with me and we can get you set up properly before this becomes a problem.
