From April 2025, working parents in the UK will benefit from a new statutory entitlement to Neonatal Care Leave and Pay, following the introduction of the Neonatal Care (Leave and Pay) Act 2023. This landmark legislation provides vital support to families of babies who require neonatal care, allowing parents to take paid time off work during what can be a highly challenging period. Here, we outline the key features of this new right and what it means for employers.
What Is Neonatal Care Leave and Pay?
The Neonatal Care Leave and Pay Act entitles eligible working parents to:
Neonatal Care Leave: Up to 12 weeks of leave for parents whose babies require neonatal care for seven consecutive days or more following birth.
Neonatal Care Pay: Statutory payment for eligible employees during the leave period, in addition to existing parental leave and pay entitlements.
The aim is to alleviate the financial and practical burdens on families whose newborns need specialist medical care, ensuring parents can be present without worrying about job security or income loss.
Key Features of the Legislation
Eligibility for Neonatal Care Leave
Available to all employees from day one of employment, with no minimum service requirement.
Applies to the parents of babies admitted to hospital or other care settings for at least seven consecutive days before reaching 28 days of age.
Parents can take the leave at any time up to the child’s first birthday.
Eligibility for Neonatal Care Pay
Employees must have 26 weeks of continuous service with their employer by the start of the leave.
They must also meet the Lower Earnings Limit (LEL) for National Insurance contributions, which for the 2025/26 tax year is £125 per week.
Neonatal Care Pay is set at the statutory rate, which is reviewed annually by the government.
Duration of Leave and Pay
Parents can take up to 12 weeks of Neonatal Care Leave and Pay, in addition to other parental entitlements such as maternity, paternity, or shared parental leave.
Notice and Evidence Requirements
Employees must provide reasonable notice to take leave.
Employers may require evidence of the baby’s admission to neonatal care, such as a letter or discharge summary from the hospital.
Implications for Employers
Employers should prepare for this new statutory entitlement by reviewing and updating their policies and procedures. Key areas to address include:
Updating Employment PoliciesAmend your parental leave policies to include Neonatal Care Leave and Pay, ensuring compliance with the legislation.
Payroll AdjustmentsUpdate payroll systems to accommodate statutory Neonatal Care Pay calculations and reporting requirements.
Staff Awareness and TrainingTrain line managers and HR teams to handle leave requests and provide support to affected employees with sensitivity and understanding.
Evidence and Records ManagementDevelop procedures for handling leave notices and evidence requirements, ensuring clear communication and compliance with data protection laws.
Supporting Employees Through Neonatal Care Challenges
The introduction of Neonatal Care Leave and Pay represents a significant step forward in supporting working parents during a critical time. Employers can enhance this by:
Offering flexible working arrangements to accommodate parents’ needs during and after the neonatal care period.
Signposting to external resources and support groups for families dealing with neonatal care.
By taking a proactive and empathetic approach, employers can foster a supportive workplace culture and enhance employee retention and wellbeing.
What’s Next?
Employers should act now to ensure readiness for the April 2025 implementation date. Begin by reviewing the full legislation on the UK Government website and keeping abreast of any further guidance or updates from HMRC.
This new entitlement provides a critical lifeline for families at a vulnerable time, and employers play a vital role in ensuring its smooth implementation. Preparing early will not only ensure compliance but also demonstrate a commitment to supporting employees when they need it most.
Comentários