New Neonatal Care rights: what you need to know
The Neonatal Care (Leave and Pay) Act 2023 will take effect on 6th April 2025, introducing new statutory rights for parents whose babies require specialist neonatal care after birth.
These new measures aim to ensure that employed parents can focus on spending time with their baby without worrying about the risks of losing their job or suffering financial hardship. This comes alongside significant reforms to employment rights seeking to implement greater protections on employees in the workplace, most notably the Employment Rights Bill currently going through Parliament.
The Government has now published the much-anticipated regulations which clarify and support the rights provided for in the Neonatal Care (Leave and Pay) Act. Although the regulations remain in draft form awaiting Parliament approval, they provide a useful insight into how these new rights will be applied. Below, we have summarised the key points employers need to know.
What will parents be entitled to?
The key entitlements of the Act are as follows:
- Parents will be entitled to one week’s leave for every period of 7 days that their child receives neonatal care without interruption, up to a maximum of 12 weeks
- Leave must be taken in weekly blocks and can be taken at any time in the first 68 weeks of the child’s birth, subject to proper notice being given
- Qualifying employees, will be entitled to statutory neonatal care pay for a maximum of 12 weeks
- The entitlement to statutory neonatal care pay may be accrued in respect of two or more separate occasions where the child receives neonatal care, provided that the care lasts at least 7 days without interruption on each occasion
- Employees will be protected against dismissal and/or detriment for taking or seeking to take neonatal care leave
Parents can decide to take their leave in non-consecutive weeks where the leave begins in a “tier 1 period”, meaning the period beginning with the day the child begins to receive neonatal care. Any period outside this, a “tier 2 period”, must be taken in consecutive weeks (i.e. in a single block).
After such periods of leave, parents have a right to return to the same job in which they were employed before the absence. They will benefit from the same terms and conditions of their employment contract. If leave is combined and taken consecutively with other period(s) of parental leave such that the employee is absent for a more extended period, the employee’s right to return is to the same job or, if not reasonably practicable, to a suitable and appropriate alternative for the employee to do in such circumstances.
How will neonatal care leave entitlements affect other statutory entitlements parents are eligible to?
Parents will be eligible to statutory neonatal care leave and pay in addition to existing family leave entitlements such as maternity, paternity or shared parental leave. This could see leave entitlements extending by up to 12 weeks for qualifying employees.
If for any reason parents decide to use their family leave entitlements in the middle of a neonatal care leave period, the regulations are clear that this does not cease their right to such leave. Any remaining neonatal care leave entitlements however must be taken immediately after.
It is important to note that the Neonatal Care Leave Act will not apply when parents are entitled to statutory sick pay provisions. Employers will not be liable to pay statutory neonatal care pay in respect of any week parents are also entitled to statutory sick pay provisions.
Who is entitled to benefit from these new rights?
The Government is clear that these will be “day one” rights, meaning employees will be entitled the rights afforded under the Act from the first day of their employment with a new employer.
Those who benefit include parents of a child who is receiving, or has received, neonatal care as well as “those with a personal relationship” to the child. The new regulations have clarified that “those with a personal relationship” include persons who will have the main responsibility for the upbringing of the baby such as intended parents or the partner of the child’s mother. The parental relationships covered are similar to those in place for shared parental leave.
When does it begin?
The new statutory neonatal care leave and pay entitlements commence from 6 April 2025, aligning with the start of the tax year. It is important that employers are prepared in advance of this date.
How should employers prepare?
The new regulations have clarified the responsibilities of both employers and employees with respect to record-keeping, evidence and notice procedures to be followed. It is important that employers have clear internal policies in place outlining their employees’ statutory rights and responsibilities covered in the Neonatal Care Act.
For example, employees must give 28 days’ notice if they decide to take their neonatal care leave entitlements within the “tier 1 period”. This reduces to 15 days’ notice when the employee decides to take their entitlements in the “tier 2 period” which is essentially at any point within the 68-week qualifying period.
The Act has left open the possibility for employers to introduce more generous entitlements if they so wish therefore, the above notice periods can be reduced. Employers should ensure that any policy changes are communicated accordingly to all employees.
Should you require any further information on the Neonatal Care Act and how it may impact your business, please get in touch with our team on 01904 437680.