Employers need to ensure they have everything in place when new laws to help parents who require extra neonatal care come into force.
From April 2025, the Neonatal Care (Leave and Pay) Act 2023 will come into effect. This will allow parents of newborns 12 weeks of leave in addition to their existing legal maternity and paternity leave.
The previous government introduced the law after a Bill was passed by MPs in 2022. The then business minister Jane Hunt said: “Having a newborn in neonatal care is an incredibly worrying time for parents. No family should also have to agonise about their return to work, or whether they have enough leave in place.”
It was given Royal Assent in May 2023. Due to HMRC and payroll providers requiring time to make adjustments, it is not being made law until next April. The change is being introduced as part of a raft of amendments to employment law, including changes to paternity leave. We looked at this in depth earlier this year.
What are the new neonatal care laws?
From next April, employees with newborn babies that need extra neonatal care will be entitled to take up to 12 weeks of leave. This will be in addition to their current parental leave entitlement.
At the moment, an employee with a newborn that needs additional medical assistance would be expected to take emergency leave. But the new entitlement allows parents to take additional neonatal care leave if their baby has received ‘medical or palliative neonatal care’. Parents will be entitled to receive statutory pay during this leave period.
Employers will need to know what the laws mean ahead of implementation. This includes:
- The newborn must have been receiving care for at least seven days.
- Employees will take neonatal care leave at the end of other parental leave entitlement. Note that employees may have returned to work before opting to take neonatal care leave.
- Neonatal care leave (NCL) must be taken within 68 weeks of birth.
- Like maternity leave, NCL is a ‘day one’ right, meaning it is a right from their first day of employment.
- If possible, employees must let employers know they wish to take neonatal care leave before the intended date of the leave.
What pay will employees be entitled to?
The legislation states that neonatal care leave will be paid at either a fixed rate or earnings-related weekly rate. This is similar to statutory sick pay.
To qualify for statutory pay, employees must have been employed for a minimum of 26 weeks prior to the leave being requested. They must also have earnings on average of at least £123 a week. This is similar to the same as the entitlement to maternity pay.
What should I do next?
If you’re an employer, then make sure you understand the changes and prepare to the change in your HR policy. Some employers are offering neonatal care leave in advance of the law coming into force. If you would like more information or help implementing the changes, you can contact our team today.