Updated: May 2026 • Based on UK Law • England, Wales & Scotland
What Is the Annual Leave Record-Keeping Duty?
Since 6 April 2026, every UK employer must keep detailed annual leave and holiday pay records for six years under Section 35 of the Employment Rights Act 2025.
Failure is now a criminal offence carrying a fine, enforced by the new Fair Work Agency.
This guide covers the new Reg 16B record-keeping duty, UK annual leave rules, 12.07% accrual for irregular hours, and how to keep compliant records.
The brown envelope lands on the doormat one Tuesday morning. Fair Work Agency.
They want six years of annual leave records.
The owner stares at the wall calendar — names scribbled in pencil, holidays crossed off with a marker.
That’s the entire record-keeping system.
Until 6 April 2026, that was fine. Now it’s a criminal offence carrying a fine.
The law changed quietly. No press release. No employer briefing.
It doesn’t even appear on the Department for Business and Trade’s published implementation timeline.
Employment lawyers spotted it in the legislation the week it was published. By then, it was already in force.
✓ Build your Reg 16B holiday records
One simple online portal does it all. Add your team once, book holiday by date range (the hours are worked out for you), log hours, overtime and sickness, and see live balances. Your Annual Leave Tracker tracks Reg 13 and Reg 13A entitlements separately, 12.07% accrual for irregular and part-year staff, holiday pay rates, carry-over and termination payments — then generates your statutory six-year record. Preview everything before buying.
Need the full ERA 2025 compliance set? The ERA 2025 Compliance Pack bundles every template you need to handle the April 2026 changes in one purchase.
The Employment Law Change Nobody Told You About
On 6 April 2026, a new statutory duty came into force requiring every UK employer to keep detailed records of annual leave and holiday pay.
It was introduced quietly.
There was no government press release. No employer briefing.
It does not appear on the official Department for Business and Trade implementation timeline.
Section 35 of the Employment Rights Act 2025 inserts a new Regulation 16B into the Working Time Regulations 1998. The wording is clear and strict.
Reg 16B — the exact obligation:
Employers must “keep records which are adequate to show whether the employer has complied with the entitlements conferred by regulations 13(1), 13A(1), 15B(2) and 16(1) and the requirements in regulations 14(2) and (6) and 15E(2)” and “retain such records for six years from the date on which they were made.”
Source: Section 35, Employment Rights Act 2025 (legislation.gov.uk)
What This Means in Plain English
Records must evidence six specific things, per worker, per leave year:
- Basic annual leave (Reg 13): The 4-week “Euro leave” entitlement — that workers received it and took it
- Additional UK leave (Reg 13A): The extra 1.6 weeks “UK top-up” entitlement
- Irregular/part-year accrual (Reg 15B): The 12.07% accrual calculation for zero-hours, casual, and term-time workers
- Holiday pay calculation (Reg 16): That a “week’s pay” was correctly calculated, including commission, regular overtime and bonuses for the Reg 13 element
- Termination payments in lieu (Reg 14): Pay-outs for untaken holiday when workers leave
- Irregular worker termination (Reg 15E): The same, for accrual-based workers
The Penalty for Non-Compliance
Failure to keep adequate records is a criminal offence carrying a fine on conviction.
The new Fair Work Agency, operational since 7 April 2026, oversees compliance with annual leave obligations.
The Agency has powers similar to those for national minimum wage enforcement — inspections, notices of underpayment, and financial penalties.
Who It Applies To
Every employer in England, Wales and Scotland — with no small employer exemption.
A sole trader with one part-time employee has the same duty as a large company.
There are no transitional provisions — employers are expected to be compliant already.
What Is the UK Legal Requirement for Annual Leave?
The statutory minimum annual leave in the UK is 5.6 weeks of paid holiday per year — known as statutory annual leave.
For a full-time worker working 5 days a week, that equals 28 days per year, which can include the 8 UK public/bank holidays.
How the 5.6 Weeks Split — and Why It Matters
The 5.6 weeks comes from two separate legal sources, and from April 2026, employers must record each one separately.
- Regulation 13 — 4 weeks (“Euro leave”): Pay must include regular overtime, commission, and bonuses where they are normally part of the worker’s earnings
- Regulation 13A — 1.6 weeks (“UK top-up”): Can be paid at basic pay only
Most employers lump these together and pay basic rate for everything.
From April 2026, the new record-keeping duty means employers must demonstrate the distinction — or risk Fair Work Agency enforcement.
The Order of Leave Use
When a worker takes a day off, it is treated as Reg 13 leave first, then Reg 13A, then any contractual top-up the employer offers.
This order matters for carry-over rules and termination calculations. Records must reflect which “pot” the leave came from.
Is 25 Days Annual Leave Legal in the UK?
Yes — 25 days annual leave is perfectly legal, and it is the most common allowance offered by UK employers.
The statutory minimum is 28 days (including bank holidays) or 20 days plus 8 bank holidays.
Most employers offer 25 days plus the 8 bank holidays, which works out to 33 days total — comfortably above the legal minimum.
Is 25 Days Normal in the UK?
Yes — it is the UK market standard for salaried roles.
Many employers also offer additional days for length of service, with 30 days plus bank holidays common at senior level.
What matters for compliance: whatever the employer offers, records must distinguish the statutory minimum from any contractual top-up.
The statutory minimum splits into Reg 13 (4 weeks) and Reg 13A (1.6 weeks) — both must be tracked separately.
How to Calculate Annual Leave Days in the UK
The calculation depends on the type of worker — standard, part-time, or irregular hours.
Standard Full-Time Workers
5.6 weeks × the worker’s normal working days per week = statutory entitlement.
- 5 days a week: 28 days statutory leave
- 6 days a week: 28 days (capped — the cap is 28 days regardless of pattern)
- 4 days a week: 22.4 days (5.6 × 4)
- 3 days a week: 16.8 days (5.6 × 3)
Irregular Hours and Part-Year Workers
For zero-hours, casual, and term-time workers, leave accrues at 12.07% of hours actually worked each pay period (Regulation 15B).
The 12.07% figure is the proportion that 5.6 weeks of leave represents out of the 46.4 working weeks in a typical year (5.6 ÷ 46.4 = 12.07%).
Compliance risks are highest for this group. Records must show the hours worked, the 12.07% accrual, and the rate at which any leave is paid.
How Much Annual Leave Do You Accrue Per 40-Hour Week?
For irregular hours workers, every 40 hours worked accrues 4.828 hours of paid leave (12.07% of 40).
For salaried workers on a fixed 40-hour week, the calculation is different.
They accrue the standard 5.6 weeks per leave year regardless of hours worked, because their entitlement is based on their normal working pattern.
Worked Examples
- 40 hours worked: 4.828 hours of leave accrued (≈ 4 hours 50 minutes)
- 20 hours worked: 2.414 hours of leave accrued
- 10 hours worked: 1.207 hours of leave accrued
- 200 hours over 5 weeks: 24.14 hours of leave accrued (roughly 3 days at 8 hours)
Records must show the underlying calculation, not just the totals.
This is the area where Fair Work Agency inspections are most likely to find non-compliance.
What Are the Rules for Annual Leave in the UK?
Annual leave in the UK is governed by the Working Time Regulations 1998.
Significant amendments have come from the Retained EU Law (Revocation and Reform) Act 2023 and now Section 35 of the Employment Rights Act 2025.
Core Rules Every Employer Must Apply
- Minimum 5.6 weeks paid leave per year, pro-rated for part-time workers
- Bank holidays can count toward the statutory minimum — they are not a separate legal right
- Leave starts accruing from day one — no qualifying period
- Workers must give notice of twice the length of leave requested (e.g. 2 weeks’ notice for 1 week off), unless the contract says otherwise
- Employers can refuse specific dates with counter-notice, but cannot deny the entitlement itself
- Carry-over is limited — Reg 13 leave can carry forward only for sickness, statutory leave, or where the employer prevents the worker from taking it
- Payment in lieu of statutory leave is unlawful while employed — only allowed on termination
Holiday Pay Calculation Rules
Holiday pay for Reg 13 leave (the 4 weeks of Euro leave) must reflect a worker’s “normal” remuneration — including:
- Regular overtime (whether contractual or not, if regularly paid)
- Commission linked to performance of the contract
- Performance-related bonuses where regularly paid
- Allowances (e.g. shift premiums) that form part of normal pay
Reg 13A leave (the 1.6 weeks UK top-up) can be paid at basic rate only.
This is the distinction the new record-keeping duty exposes.
An employer who pays everything at basic rate, then can’t produce records showing the Reg 13 element was correctly calculated, is in clear breach.
ERA 2025 Compliance Pack
Complete ERA 2025 Toolkit • Every Template You Need for the April 2026 Changes
Lifetime Access • Free Updates • 30-Day Money-Back Guarantee*
How to Maintain Leave Records of Employees
The legislation does not prescribe a format.
Section 35 says records “may be created, maintained and kept in such manner and format as the employer reasonably thinks fit.”
But the records must be adequate to show compliance — and that is a high bar in practice.
What “Adequate” Records Look Like
- Per worker, per leave year — not aggregated company-wide
- Reg 13 and Reg 13A tracked separately — including which pot each day of leave came from
- Holiday pay rate shown — distinguishing Reg 13 (with overtime/commission) from Reg 13A (basic)
- For irregular hours workers: the 12.07% accrual calculation, the hours worked, and the running balance
- Carry-over recorded with the legal reason (sickness, statutory leave, employer prevented taking)
- Termination calculations — Reg 14 for standard workers, Reg 15E for irregular workers
- Retained for 6 years from the date the record was made — not from the date the worker left
Common Mistakes to Avoid
- One blended “holiday allowance” with no Reg 13 / Reg 13A split — fails the adequacy test
- Basic-rate pay for all leave with no record of the Reg 13 calculation — Fair Work Agency red flag
- Zero-hours workers given a rough “12.07% top-up” with no per-period accrual record
- Carry-over with no reason recorded — implies non-compliance with the carry-over rules
- Termination pay-out with no calculation breakdown — the worker (or a Fair Work Agency inspector) cannot verify it
What Is an Annual Leave Compliance Report?
An annual leave compliance report is the documented evidence that an employer has met the Reg 16B obligations for each worker over a leave year.
It is not a single template prescribed by government — it is the structured set of records the employer can produce on demand if asked.
What a Compliance Report Should Demonstrate
- The worker’s entitlement — Reg 13, Reg 13A, and any contractual addition
- All leave taken with dates and which entitlement pot it came from
- The pay rate applied to each period of leave, with the calculation shown
- Running balances showing what is left in each pot
- Any carry-over with the legal reason recorded
- For irregular workers: the running 12.07% accrual
- Termination calculations if the worker has left during the year
This is what our Annual Leave Tracker produces — the structured compliance report Reg 16B effectively requires.
What Our Annual Leave Tracker Covers
One simple online portal — no spreadsheets, no logins, no subscription. Set it up once and run your whole team’s holiday from it all year, structured following Reg 16B and the underlying Working Time Regulations requirements.
- One portal for your whole team: add everyone once, grouped by working pattern — from a sole trader with one employee to a multi-site employer
- Worker types: standard, irregular/zero-hours, and part-year (term-time)
- Book holiday by date range: the hours are worked out automatically from each person’s working days, editable for part-days
- Accrual from hours worked: 12.07% for irregular and part-year staff, with opening balances for mid-year starts
- Reg 13 / Reg 13A split: tracked separately, with order-of-use allocation and a running balance in each pot
- Holiday pay rates: Reg 13 at normal remuneration (overtime/commission/bonus), Reg 13A at basic — shown separately
- Hours, overtime & sickness logging: long-term sickness flagged; holiday is never reduced by sickness
- Carry-over your way: use it or lose it, UK top-up by agreement, or a set cap with expiry — plus lawful carry-over for sickness and family leave
- Termination payments in lieu: Reg 14 / Reg 15E with a calculated breakdown
- April leave-year roll-over and editable statutory figures (5.6 weeks / 12.07%) so it stays correct if the law changes
- Generates your statutory record in Word & PDF, with 6-year retention built in. Your data stays on your device — nothing is uploaded — with backup & restore
Designed for businesses of any size.
From a sole trader with one part-time employee to multi-site employers managing dozens of workers across different patterns.
Frequently Asked Questions
Is 25 days annual leave legal in the UK?
Yes — 25 days is legal and above the statutory minimum.
The UK statutory minimum is 5.6 weeks (28 days for a 5-day-week worker, which can include the 8 bank holidays).
Most UK employers offer 25 days plus 8 bank holidays — 33 days total — which is the market standard for salaried roles.
How do I calculate annual leave days in the UK?
For standard workers: 5.6 weeks × normal working days per week, capped at 28 days. For 5-day workers, that is 28 days.
For irregular hours and part-year workers, leave accrues at 12.07% of hours worked each pay period under Regulation 15B.
What are the rules for annual leave in the UK?
Workers are entitled to 5.6 weeks of paid leave per year (which can include bank holidays). Leave starts accruing from day one.
From 6 April 2026, employers must keep adequate records of leave entitlement, leave taken, holiday pay rates, carry-over, and termination payments.
Records must be retained for 6 years.
How to maintain leave records of employees?
Records must be kept per worker, per leave year, and must distinguish the 4 weeks of Reg 13 leave from the 1.6 weeks of Reg 13A leave.
They must show entitlement, leave taken, pay rate, carry-over, and termination calculations — retained for 6 years.
How much annual leave do you accrue per 40-hour week?
For irregular hours workers, every 40 hours worked accrues 4.828 hours of paid leave (12.07% × 40).
For salaried workers on a fixed 40-hour pattern, the calculation is based on weeks worked per year.
They accrue 5.6 weeks of leave regardless of total hours.
Is 25 days annual leave normal in the UK?
Yes — 25 days plus 8 bank holidays is the UK market standard for salaried roles. Senior roles often have 28 to 30 days plus bank holidays.
What is an annual leave compliance report?
It is the structured set of records demonstrating compliance with Regulation 16B for each worker.
It must show entitlement, leave taken, pay rates, carry-over, and termination calculations.
No specific format is prescribed by law, but the records must be “adequate to show compliance” with the Working Time Regulations.
What is the legal requirement for annual leave in the UK?
The statutory minimum is 5.6 weeks of paid annual leave per year.
That breaks down as 4 weeks under Regulation 13 (Euro leave) and 1.6 weeks under Regulation 13A (UK top-up).
From April 2026, employers must keep records demonstrating compliance with both elements, retained for 6 years.
Is our annual leave tracker legally binding?
When completed accurately, our tracker produces records structured following Regulation 16B of the Working Time Regulations 1998.
Reg 16B was inserted by Section 35 of the Employment Rights Act 2025.
It separates Reg 13 from Reg 13A leave and tracks the 12.07% accrual for irregular and part-year workers.
The calculations needed for a Fair Work Agency inspection are built in.
Do I need a solicitor to set up holiday records?
Most UK employers complete annual leave records without one. The duty is administrative — keeping accurate records in an adequate format.
Consider solicitor review if you have complex employee structures or multiple worker types on different contractual terms.
Also worth doing if you are already facing a Fair Work Agency inspection.
The Truth About “Free” Legal Template Sites (What You’re Really Signing Up For)
Most websites offering a “free legal template” follow the same pattern:
- You click because it’s advertised as free
- You spend 10–15 minutes answering questions
- At the very end, you must create an account or start a “free trial”
- Your card is required upfront
- The subscription auto-renews at £29–£39 per month
This isn’t a free template – it’s a subscription service. Many people only realise after being charged £300–£400 over the year.
Why These “Free” Templates Are a Risk
- Outdated wording: not aligned with current UK law
- Missing clauses: important provisions left out
- No compliance guidance: leaving users without legal context
- No structured checklist: no easy way to check the document is complete
- Not kept updated: often unchanged when legislation changes
One missing or outdated clause can weaken a document when you need it most.
Hidden Problem: Many “Free Template” Sites Aren’t Even UK-Based
Another major issue is that many free or auto-subscription template sites operate outside the UK and use documents originally drafted for the US legal system. These are then loosely adapted for “international use,” which creates serious problems:
- Incorrect terminology: taken from US contract law
- Missing UK statutory references: key UK provisions omitted
- Non-applicable clauses: terms that don’t apply under UK legislation
- Legal conflicts: risks not lining up with UK consumer, employment, or GDPR rules
Why Templates UK Does the Opposite
- Drafted by UK professionals: written by experienced business & legal experts
- UK law only: no US crossover or generic “international” templates
- One-time price from £10: no subscriptions, no renewals
- Full preview: see the exact document before buying
- Lifetime access: free lifetime updates included
My Templates Dashboard
All purchased templates are stored in your personal My Templates page, organised by category.
We monitor UK law changes and, when we update a template, the new version appears free in your dashboard — accessed whenever you need it.
Build a growing library of UK legal documents across every area of your business and personal life.
Transparent Pricing
From £10 per template — with free lifetime usage and free lifetime updates. No subscriptions. No renewals. No auto-billing.
Not ready to buy? Use our free interactive checklists to guide your own document — no payment required.
No tricks. No trials. No hidden fees. Just the exact UK-specific legal document you came for — at the price we told you upfront.
Run your team’s holiday from one portal with our Annual Leave Tracker. Preview the full record before buying — only pay when you’re happy with it.
Get the Largest Bundle — UK Legal Templates Ultimate Bundle
The UK Legal Templates Ultimate Bundle includes 91 templates across every category — one purchase, lifetime updates, no subscriptions.
Explore Template Bundles by Category
One purchase, lifetime updates, no subscriptions.
- ERA 2025 Compliance Pack — every template you need for the April 2026 changes
- Business Complete Suite — 37 templates, £199 (smaller packs available)
- Landlord Ultimate Bundle — 33 templates, £120 (smaller packs available)
- Complete Family Pack — 18 templates, £65 (smaller packs available)
- Complete Estate Pack — 8 templates, £49 (smaller packs available)
Explore the Master Business Legal Templates Pillar Guide
The complete overview of 37 essential UK business templates.
UK Business Legal Templates — Complete Master Guide
Explore All Templates UK Pillar Guides
- Family Law Documents Guide UK
- Wills & Estate Planning Guide UK
- Residential Landlord Documents Guide UK
- Employment Documents Guide UK
- How to Set Up a Business in the UK — Legal Guide
- Website Legal Documents UK — Compliance Guide
- Financial & Commercial Contracts UK — Protection Guide
- Commercial Office Lease Guide UK
- Digital & IP Agreements Guide UK
Related Guides
- ERA 2025 Compliance Pack — Full April 2026 Bundle
- Employment Documents Guide UK — Complete Set
- Is a Whistleblowing Policy Mandatory? UK Employer Guide
- Hybrid Working UK 2026 — Complete Employer Guide
Free Legal Templates & Interactive Checklists
Access all our free UK legal templates, checklists and downloadable PDFs.
Last updated: May 2026
Disclaimer: This guide provides general UK legal information, not legal advice.
Laws current as of May 2026.
Section 35 of the Employment Rights Act 2025, inserting Regulation 16B into the Working Time Regulations 1998, took effect on 6 April 2026.
This guide applies to Great Britain (England, Wales & Scotland).
Northern Ireland operates under separate devolved employment law and is not covered here.
Always verify current requirements with official sources. Existing customers receive the updated template free in their My Templates page.
