What The New Six-Year Records Rule Means For Your HR and Payroll Processes

From April 2026, organisations are required to keep records relating to annual leave and holiday pay for a minimum of six years. The new rules are designed to improve transparency and compliance, giving regulators greater oversight of holiday entitlement and pay calculations.

For employers, this means ensuring systems, processes, and record-keeping practices are robust enough to demonstrate compliance if challenged. Failure to maintain adequate records could expose businesses to enforcement action, financial penalties, and unnecessary risk.

Employment Hero's latest article breaks down what the new requirements mean in practice, what records employers need to retain, and how businesses can prepare for the changes with confidence. It's essential reading for HR, payroll, and business leaders looking to stay compliant.

The six-year record-keeping requirement applies from April 2026 and covers holiday entitlement, leave taken, holiday pay calculations, and related records.

Read the full article here >