Holiday pay records
Since 6 April 2026, you must keep records to show that employees have received the correct amount of holiday and been paid correctly for it. These records must be adequate to demonstrate compliance with your legal duties.
You must show that you have:
- Given employees 5.6 weeks’ holiday per holiday year
- Correctly calculated the holiday entitlement of irregular hours and part year workers, so that they receive the equivalent of 5.6 weeks’ leave per year, calculated by reference to the amount of holiday they have accrued either when the leave is taken or when it is paid
- Paid employees the correct amount of holiday pay (including overtime)
- Paid for any accrued but untaken holiday when an employee leaves part-way through a holiday year; and
- Correctly carried over unused leave and included it in any payment made on termination.
Remaining compliant
In practice, this means you must be able to demonstrate that you have accurately calculated each employee’s entitlement and paid them correctly for that leave.
You must keep these records for six years from the date they were made. Failing to keep adequate records is a criminal offence. In most cases, a conviction will result in a fine.
The government has also confirmed its intention for the Fair Work Agency to become responsible for enforcing the rules on paid holiday in due course. This is likely to bring greater scrutiny and enforcement in this area. You can read more about the Fair Work Agency.
Holiday pay calculations are notoriously complex. Many employers are still unknowingly underpaying their staff.
Our employment law team has extensive expertise advising on holiday entitlement, accrual and pay calculations. We also have a detailed practical guide to help you understand the intricacies of holiday accrual and pay which you can purchase.