NEONATAL CARE LEAVE AND PAY
Neonatal Care Leave and Pay to Take Effect from April 2025
The UK Government has confirmed that the new statutory right to neonatal care leave and pay will come into effect on 6 April 2025. This significant development provides critical support to parents of babies who require neonatal care after birth. Employers must prepare for these changes to ensure compliance and support their workforce effectively. Here, we outline the key aspects of the new entitlement and its implications for employers and employees.
What Is Neonatal Care Leave and Pay?
The Neonatal Care (Leave and Pay) Act 2023 introduces a new statutory right for eligible working parents to take leave and receive pay if their baby is admitted to neonatal care within the first 28 days of life. This right aims to alleviate the financial and emotional strain often experienced by parents in these challenging circumstances.
Key Features:
- Eligibility: Neonatal care leave will be available to all employees from day one of employment. However, statutory neonatal care pay will require qualifying employees to have 26 weeks’ continuous service with their employer and to meet minimum earnings thresholds.
- Duration: Eligible parents can take up to 12 weeks of neonatal care leave. This is in addition to other parental leave entitlements, such as maternity, paternity, or shared parental leave.
- Payment: Statutory neonatal care pay will be aligned with other statutory parental payments, currently set at £172.48 per week (or 90% of average weekly earnings, if lower).
“By planning ahead and fostering a culture of care and understanding, employers can not only ensure compliance but also enhance employee engagement and retention.”
Who Will Benefit?
The new entitlement will apply to parents whose babies spend at least seven consecutive days in neonatal care following birth. This includes care in neonatal intensive care units, high-dependency units, and other specialist hospital wards.
Eligible parents will have the flexibility to take neonatal care leave at any point up to the child’s first birthday, allowing them to coordinate the leave with their family’s needs.
Employer Obligations
Employers must be aware of the following key obligations:
1. Policy Updates: Employers will need to update their family leave policies to include details of neonatal care leave and pay. Clear communication of these changes is essential to ensure employees understand their rights.
2. Payroll Adjustments: Payroll systems should be reviewed and updated to accommodate statutory neonatal care pay, including processes to verify eligibility and calculate payments.
3. Record-Keeping: Employers must keep accurate records of employees’ neonatal care leave and pay for HMRC reporting purposes.
4. Staff Training: HR teams and line managers should be trained to handle requests for neonatal care leave sensitively and in compliance with the law.
Practical Considerations
Employers may face operational challenges in managing prolonged absences. Proactive planning can mitigate these issues:
- Workforce Planning: Ensure contingency plans are in place to manage workloads during parental absences.
- Support Networks: Consider offering additional support, such as employee assistance programmes (EAPs) or peer support groups, to assist affected employees.
- Enhanced Benefits: Employers wishing to go beyond statutory requirements could offer enhanced neonatal care leave and pay, demonstrating a commitment to employee wellbeing.
Wider Implications
This legislative change reflects a broader trend towards greater workplace support for parents and carers. It aligns with existing rights, such as parental bereavement leave, and underscores the importance of a family-friendly workplace culture. For employers, this is an opportunity to review and strengthen their overall approach to family-related leave and support.
Next Steps for Employers
To prepare for the introduction of neonatal care leave and pay:
1. Audit Policies: Review and update policies to incorporate the new entitlement.
2. Engage with Employees: Communicate the changes clearly, emphasising your organisation’s commitment to supporting employees.
3. Provide Training: Equip HR and line managers with the knowledge and resources needed to manage requests effectively.
4. Review Systems: Ensure payroll and HR systems are ready to handle the new statutory requirements.
The introduction of neonatal care leave and pay marks a pivotal step in supporting working parents during one of the most challenging times in their lives. By planning ahead and fostering a culture of care and understanding, employers can not only ensure compliance but also enhance employee engagement and retention.
If you have any questions about implementing these changes or need assistance updating your policies, we are here to help.