Last Minute Addition to the April Changes Introduced Under Employment Rights Act 2025
Posted on in Employment Law
As part of its proposals under the Employment Rights Act 2025, the Government indicated that there would be a new obligation on employers to keep certain records to demonstrate that they have complied with their obligations in relation to annual leave entitlement and pay. Previously, there had been no clear indication of the timeframe to implement this change, however this week, the Government confirmed that this change will come into force on 6 April 2026.
From this date, employers will need to keep adequate records to show whether they have complied with their obligations in relation to:
- Entitlement to annual leave
- Entitlement to additional annual leave
- Entitlement to annual leave of irregular hours and part-year workers
- Entitlement to pay for annual leave
- The requirement to make a payment in lieu of holiday outstanding on termination of employment, including any holiday carried forward from a previous leave year.
- The requirement to make a payment to irregular hours workers and part-year workers in lieu of holiday outstanding on termination of employment.
Records must be kept for six years from the date on which they were made.
Given the short timeframe, we recommend that you review your current processes and procedures for calculating and recording holiday entitlement and pay, and implement any necessary changes – including ensuring that proper records are being kept - ahead of the April deadline.
How can Tozers help?
If you require further advice on this update, please get in touch with Tozers for assistance in navigating these changes smoothly. Our team of experts are well-versed in employment law and can provide tailored advice to ensure compliance with the new regulations.
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