Following the passing of the Neonatal Care (Leave and Pay) Act 2023, the government has now confirmed that the new rights for parents whose babies require neonatal care will come into force on 6 April 2025, and draft regulations have been published.
With the introduction date approaching fast, this article outlines what the new legislation entails and what employers must do to prepare for its implementation.
What is it?
Neonatal Care is defined as care of a medical or palliative kind within the first 28 days of the child’s birth. Neonatal care leave applies to those with parental responsibility for a baby admitted to neonatal care within the first 28 days of birth. This includes mums, dads and adopted parents, together with partners of the baby’s mother.
The right to neonatal care leave will be considered a ‘day one’ right for parents of newborn babies (i.e. within the first 28 days after birth) who are admitted into hospital. The right will come into effect if the baby is in hospital for a continuous period of 7 days or more. The maximum amount of leave available is 12 weeks and must be used within 68 weeks of birth. The minimum amount of leave that can be taken is 1 week.
Additionally, statutory neonatal care pay will also be available to those employees that have 26 weeks’ continuous service and weekly earnings above the lower earnings limit of £123.
What do employers need to know?
This new legislation looks set to deliver benefits and more security to parents of babies in neonatal care. There will be a number of implications for employers as a result of this that will be important to consider.
Policies
Employers should establish a clear policy outlining employees’ statutory rights to neonatal leave and pay, as well as any enhanced entitlements. Providing a template notice form for employees can also help streamline the process. If enhanced family leave is offered, employers should consider how Neonatal Care Leave will interact with those benefits.
Timing
Employees will typically take Neonatal Care Leave following the conclusion of their other parental leave entitlements. While the aim is to extend the total leave period available, some employees may opt to end their maternity leave after their statutory maternity pay ceases at 39 weeks and transition to Neonatal Care Leave and Statutory Neonatal Care Pay for an additional 12 weeks. This approach allows an eligible employee nearly a full year of paid leave (albeit at statutory rates unless the employer offers enhanced benefits).
Enhancements
Some employers have already implemented neonatal leave and pay policies setting out entitlements, while others may now choose to enhance their offering based on the details of the statutory scheme.
Redundancy
Employees taking more than six weeks of Neonatal Care Leave must be added to the list of those entitled to priority status in redundancy situations. Since this protection extends until the child reaches 18 months, employers should track Neonatal Care Leave in the same way as other parental leave types.
Absence Management
The effects of a traumatic birth or a newborn’s stay in neonatal intensive care can impact an employee’s physical and mental health, potentially leading to long-term conditions. Employers should consider this when assessing changes in performance, behavior, or absences and handle requests for time off or increased sick leave with care, mindful of potential disability discrimination risks.
Training
Given the complexities of this new right, this may be a good opportunity for employers to offer refresher family leave training for HR staff, which covers this new right and upcoming changes in the Employment Rights Bill.
It is important for employers to ensure they are prepared now, so they are not caught out by any legislative changes in April.
If you are an employer who would like some advice in relation to the new Neonatal Care (Leave and Pay) Act 2023, please get in touch with a member of the Glaisyers Employment team.
