Annual Leave Compliance Audit
A fixed-fee assessment to ensure compliance with UK Working Time Regulations and statutory record-keeping requirements.
The Kea Annual Leave Compliance Audit is a structured HR led review designed specifically for SMEs with up to 100 employees. During the audit we assess how annual leave is recorded, calculated, and retained across your HR and payroll systems. Your final report will clearly identify risks and provide practical recommendations to improve compliance and reduce legal exposure.
From April 2026, new statutory requirements will place greater emphasis on retaining accurate annual leave records for six years. This means it is no longer sufficient to simply process holiday pay correctly, you must be able to demonstrate how it has been calculated and recorded.
The Kea Annual Leave Compliance Audit includes:
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Who The Kea Annual Leave Compliance Audit Is For
This audit is designed for SMEs with up to 100 employees who want clarity and confidence in their annual leave processes.
This audit is ideal for owners of SMEs who are:
- Uncertain whether holiday entitlement is being calculated correctly
- Concerned about compliance with Working Time Regulations
- Using multiple systems or manual tracking spreadsheets
- Experiencing inconsistencies in manager approval processes
If your business has more than 100 employees or has unusually complex leave systems, please contact us so we can discuss an Enhanced or bespoke audit option.
What Records Must Be Retained?
From April 2026, employers will be expected to maintain clear and accurate records covering:
- Annual leave accrued
- Annual leave taken
- Annual leave carried forward between leave years
- Holiday pay calculations, including variable pay elements
- Payment in lieu of holiday on termination of employment
These records must be retained for six years and made available for inspection where required.
Typical Gaps In Record Keeping
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Common gaps in records will be:
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Not sure if your records are compliant?A structured audit will identify gaps in your current approach and provide clear, prioritised actions to reduce compliance risk. |
What the Kea Annual Leave Compliance Audit Covers
Legal Compliance
- Working Time Regulations alignment
- Holiday entitlement accuracy
- Carry-over rules
Operational Practice
- Policy adherence
- Manager approval consistency
- Process execution
Payroll & System Accuracy
- Holiday pay calculations
- HR/payroll system configuration
- System integration
Record-Keeping & Retention
- Data completeness
- 6-year record retention capability
- Audit trail integrity
How the Kea Annual Leave Compliance Audit Works
A simple, structured process designed to minimise disruption to your business while giving you a clear view of your compliance position.
Initial Assessment
Complete a short assessment so we understand your workforce, systems, and current approach.
Takes around 10–15 minutes
Provide Key Information
Share your policy and a simple data export. We guide you on exactly what’s needed.
Typically 30–60 minutes of your time
Audit & Analysis
We carry out a structured review of your policies, systems, and records to identify any risks or gaps.
Completed by us over several hours depending on scope
Report & Walkthrough
You receive a clear report with findings and recommended actions, followed by a walkthrough discussion.
Delivered within 5–10 working days
How The Kea Annual Leave Compliance Audit Helps You
You will gain clarity on:
- Whether your current systems are compliant
- Where your key risks are
- What needs to be addressed first
- How to reduce the risk of payroll disputes or enforcement action
Choose the Right Level of Support
All audits are fixed-fee based on your organisation size and complexity. Most SMEs with up to 100 employees fall within the pricing ranges qouted.
We will confirm the appropriate level after reviewing your initial enquiry.
Compliance Review
The recommended audit for most organisations with up to 100 employees.
This is our most commonly selected option because it balances depth, cost, and actionable insight.
Best for organisations that want clear answers to:
- Are our annual leave calculations legally compliant?
- Where are we exposed to payroll or entitlement risk?
- Is our system actually doing what our policy says?
- Policy + statutory compliance review
- System and process mapping
- Structured employee sampling (risk-based)
- Root cause analysis of key issues
- Prioritised remediation plan
Designed to give you a defensible, operationally useful view of your annual leave compliance — without unnecessary over-auditing.
£895 – £1,250 (fixed fee based on headcount and complexity)
Health Check
For organisations typically with fewer than 10 employees and straightforward leave processes.
High-level review of your policies and basic compliance position.
- Policy review only
- Basic risk overview
- Summary findings
Suitable where HR processes are minimal or straightforward.
£395 – £595 (fixed fee based on headcount and complexity)
Advanced Risk & Assurance
For more complex systems or higher-risk setups within the SME bracket (up to 100 employees).
Deeper review where multiple systems or inconsistent records are in use.
- Expanded record sampling
- Cross-system validation
- Deeper risk commentary
Recommended only where additional complexity is identified.
From £1,795 (based on headcount and complexity)
Not sure which applies?
Complete the audit request form and we will confirm the appropriate level of review before starting any work.
Request A Pre Audit Assessment
