From 6 April 2026, employers will be expected to keep records relating to annual leave and holiday pay for up to six years.
For many businesses, this may sound like a small compliance update. In reality, it is an important shift. It places greater emphasis on having clear, reliable holiday and pay records that can stand up to scrutiny if questions are raised.
For employers still relying on spreadsheets, email chains, manager notes and separate payroll workarounds, now is the time to review whether your current process is fit for purpose.
This is exactly where having a central, digital system like WorkSmarter can make a significant difference – bringing holiday, absence and employee records into one place with a clear audit trail.
What is changing?
The new requirement means employers should be able to demonstrate how statutory holiday has been handled in practice.
This includes clear records of:
- leave entitlement
- leave taken
- remaining balances and carry over
- holiday pay calculations
- any relevant payments made when employment ends
In simple terms, employers will need more than a basic record of time off. They should be able to evidence the full picture of how holiday has been tracked, calculated and paid.
With WorkSmarter, this information is automatically recorded and accessible in real time, helping employers move away from manual tracking and towards a more reliable, structured approach.
Why this matters
If holiday management is spread across different systems, spreadsheets, inboxes and manual workarounds, it becomes much harder to prove compliance quickly and confidently.
Good record-keeping also supports the day-to-day running of the business. It helps employers:
- reduce the risk of disputes
- improve payroll accuracy
- apply holiday processes consistently
- respond more confidently to employee queries
- provide a clear audit trail if challenged by an adviser or enforcement body
In short, stronger records do not just support compliance, they support better business practice.
The WorkSmarter approach
WorkSmarter supports this by giving employers a live, centralised view of entitlement, bookings and balances, alongside a full history of approvals and changes.
This creates a clear audit trail, reduces manual risk, and makes it far easier to evidence compliance when needed.
Need HR support or want to see WorkSmarter in action? We’ve got you covered. Get in touch today.
