On 1 October 2026, one of the most practical changes in the Employment Rights Act 2025 came into force: the primary time limit for most employment tribunal claims doubled from three months to six months. For anyone managing annual leave and holiday pay, that matters directly, because holiday pay underpayments are usually brought as unlawful deduction from wages claims, one of the claim types now covered by the longer window. At TimeClock 365 we track these changes so UK employers can see what they mean for day-to-day leave records.
This article explains what changed, how the transitional rules work, how it interacts with Acas early conciliation and the upcoming Fair Work Agency enforcement, and what it means for your holiday records.
What changed on 1 October 2026
The Employment Rights Act 2025 extends the limitation period for the majority of employment tribunal claims from three months (less one day) to six months (less one day). The change applies to a wide range of claims, including unfair dismissal, discrimination, whistleblowing detriment and unlawful deductions from wages. Equal pay and statutory redundancy payment claims already had six-month limits.
Breach of contract claims were originally left out of the Act, but the government extended them through separate regulations. In Scotland, the six-month period for breach of employment contract claims takes effect slightly later, on 9 November 2026.
Why this matters for holiday pay
A worker who believes their holiday pay was calculated incorrectly, for example because regular overtime or commission was left out, or who was not paid for accrued but untaken leave on leaving, will typically bring an unlawful deduction from wages claim. Under the old rules, that worker had three months from the relevant deduction to start the process. Now they have six.
In practice, that means:
- Disputes stay live for longer. A leaver who was underpaid holiday on their final payslip may raise it months after they have gone.
- You need to find older records quickly. By the time a claim arrives, the line manager who approved the leave may have moved on.
- Calculation evidence matters more than ever. A tribunal will want to see how holiday pay was worked out, not just how many days were taken.
The transitional rule: which claims get six months?
The extension is not retrospective. It applies where the relevant date, usually the act or failure complained of, falls on or after 1 October 2026. If the relevant date falls before that, the three-month limit still applies.
Series of deductions
Holiday pay underpayments often repeat every time leave is taken. For a series of similar acts or failures, the relevant date is generally the last one in the series. So if a worker's most recent underpayment falls on or after 1 October 2026, the six-month limit should apply to the claim about that series, even where earlier underpayments in the series happened before October.
Acas early conciliation
Claimants must usually notify Acas before bringing a claim, and the limitation clock is paused while early conciliation takes place. The standard early conciliation period was extended from six to twelve weeks on 1 December 2025. Commentators note that, combined with the new six-month limit, a claimant may in some cases have up to around 10.5 months from the relevant act to file a claim.
How this fits with record-keeping and the Fair Work Agency
The longer time limit is one piece of a wider tightening of holiday pay compliance:
- Record-keeping duty (in force since 6 April 2026): employers must keep records adequate to show compliance with statutory holiday and holiday pay entitlements, and retain them for six years. Failing to do so is a criminal offence. We covered this in detail in our guide to the UK holiday pay record-keeping law.
- Fair Work Agency enforcement (expected 2027): the Fair Work Agency launched on 7 April 2026, but it is not yet enforcing holiday pay. The government consulted on its approach from 30 June to 22 September 2026 and has said holiday pay enforcement will start in 2027, not before April 2027, with timing subject to the consultation outcome. A formal response had not been published at the time of writing.
Taken together, workers now have a longer window to bring individual claims, while employers already have a legal duty to hold the evidence that would answer them.
What UK employers should do now
- Review your retention settings. Make sure leave and holiday pay records for leavers are kept, retrievable and not deleted when an employee's account is deactivated.
- Record the calculation, not just the days. Keep which pay elements were included in holiday pay (basic, regular overtime, commission) and how irregular-hours accrual was worked out.
- Check final-pay processes. Payments in lieu of untaken leave on termination are a common source of deduction claims.
- Keep approvals auditable. Who requested, who approved, when, and any carry-over decisions should be visible in one place.
- Update internal timelines. Any claims tracking or settlement planning that assumed a three-month window needs updating for events on or after 1 October 2026.
How TimeClock 365 helps
TimeClock 365 keeps time-off requests, approvals, balances and carry-over in the same cloud system as clock-in data, so the hours that drive holiday pay and the leave taken sit in one audit trail. Our PTO and leave management module records accrual and approvals per employee, and our HR compliance management tools help you export the history you need if a claim arrives months after an employee has left.
Frequently asked questions
How long does a UK worker have to bring a holiday pay claim to an employment tribunal?
For underpayments where the relevant date is on or after 1 October 2026, the primary time limit is six months less one day, doubled from the previous three months by the Employment Rights Act 2025. Holiday pay underpayments are usually claimed as unlawful deductions from wages. Starting Acas early conciliation pauses the clock, so the practical window can be considerably longer.
Does the six-month tribunal time limit apply to holiday pay underpayments before 1 October 2026?
Not on its own. The extension is not retrospective: where the relevant date falls before 1 October 2026, the old three-month limit applies. However, for a series of deductions the relevant date is generally the last deduction in the series, so if the most recent underpayment is on or after 1 October 2026, the six-month limit can apply to the series.
How does Acas early conciliation affect the new six-month time limit?
A claimant must normally notify Acas before bringing a claim, and the limitation clock is paused during early conciliation. The standard conciliation period has been 12 weeks since 1 December 2025. Commentators note that, combined with the six-month limit, a claimant may have up to roughly 10.5 months in some cases.
Has the Fair Work Agency started enforcing holiday pay?
No. The Fair Work Agency launched on 7 April 2026, but holiday pay enforcement is not yet live. The government consulted on its approach between 30 June and 22 September 2026 and has said enforcement will start in 2027, not before April 2027, subject to the consultation outcome.
What holiday records should UK employers keep to defend a holiday pay claim?
Since 6 April 2026, employers must keep records adequate to show compliance with statutory holiday and holiday pay entitlements, for six years. In practice that means leave accrued, taken and carried over, how holiday pay was calculated (including overtime or commission elements), and any payments in lieu on termination, for current and former workers.
Related: see how TimeClock 365 handles leave management and payroll export.
This article is general information, not legal advice. Time limits depend on the specific facts and dates of each case. For guidance specific to your business, contact ACAS or a qualified UK employment solicitor.