The Neonatal Care (Leave and Pay) Act 2023 is set to come into force on the 6th April 2025 and marks a significant step forward in supporting families during one of the most challenging times they may face. This legislation provides crucial rights to parents of babies requiring neonatal care, ensuring they can take necessary time off work without the added stress of financial instability. Here, we explore the key aspects of the Act and its implications for both employers and employees.
Key Provisions of the Act
Neonatal Leave Entitlement: Eligible employees are entitled to up to 12 weeks of statutory neonatal care leave, if their baby requires neonatal care for at least seven days, and the care begins before the child is 28 days old. This leave can be taken in addition to other forms of statutory leave, such as maternity or paternity leave, and must be used within 68 weeks of the child’s birth.
Pay Entitlement Under the Neonatal Care (Leave and Pay) Act 2023: Employees with at least 26 weeks of continuous service and average earnings of at least £123 per week are entitled to statutory neonatal care pay, which is paid at the same rate as statutory paternity pay.
Notice Provisions for Taking Neonatal Leave: The Act introduces specific notice requirements for taking neonatal care leave and pay. For leave taken during the child’s neonatal care period or the week following it (Tier 1), no advance notice is required, allowing for greater flexibility. For leave taken after this period (Tier 2), at least 15 days’ notice is required.
Legal Protections for Employees Taking Neonatal Leave: Employees taking neonatal care leave are entitled to return to the same or a suitable alternative role; protection from redundancy during and after the leave; and protection from unfair dismissal and detriment.
Implications for Employers
Policy Updates: Employers must update their family leave policies to incorporate the new entitlements under the Act. This includes clearly outlining the conditions for leave and pay, as well as the notice requirements.
Communication: It is essential for employers to inform all staff about the new rights and how they can be accessed. Clear communication will help ensure that employees are aware of their entitlements and the procedures for applying for leave and pay.
Operational Planning: Employers should prepare for potential staffing challenges by planning for temporary coverage during periods of neonatal care leave. This may involve cross-training employees or hiring temporary staff to ensure business continuity.
Implications for Employees
Support During Critical Times: The Act provides much-needed support for parents during the critical early weeks of their baby’s life. By allowing parents to take time off work without financial stress, the Act helps families focus on their child’s health and well-being.
Job Security: Employees can take neonatal care leave with the assurance that their job is protected. This security is vital for parents who need to be with their child during neonatal care.
Flexibility: The Act’s flexible notice provisions for Tier 1 leave allow parents to respond to their child’s needs without the burden of advance notice requirements. This flexibility is particularly important in the unpredictable context of neonatal care.
The Neonatal Care (Leave and Pay) Act 2023 is a landmark piece of legislation that provides essential support to families during a vulnerable time. Employers must take proactive steps to update policies, communicate new rights, and plan for operational impacts. For employees, the Act offers critical financial and job security, allowing them to focus on their child’s care. As we move towards the implementation date on the 6 April 2025, it is crucial for both employers and employees to understand and prepare for these new entitlements.
If you have any questions in relation to your rights as an employee under the Act or your responsibilities as an employer, including the updating of employment contracts and policies, please don’t hesitate to contact our employment law specialists at Farleys. Call us on 0845 287 0939, get in touch by email, or use the online chat below.
