The introduction of the Neonatal Care (Leave and Pay) Act 2023 marks a significant advancement in supporting parents and families during challenging times. This legislation, set to come into force on 6 April 2025, provides a statutory right to neonatal care leave and pay, offering crucial support to parents whose newborns require extended hospital care. The Act aims to alleviate the emotional and financial burdens faced by families during such periods, ensuring that parents can focus on their child's well-being without the added stress of work commitments.
Eligibility and entitlements
The Neonatal Care (Leave and Pay) Act 2023 establishes a day-one right for employees to take neonatal care leave. This entitlement applies to parents of babies born on or after 6 April 2025, who require neonatal care within the first 28 days of life and remain in care for at least seven consecutive days. The leave is available to a wide range of parents, including biological parents, adoptive parents, and those in surrogacy arrangements, as well as partners of the child's mother or prospective adopter.
Eligible parents can take up to 12 weeks of neonatal care leave, which is in addition to existing statutory family leave entitlements such as maternity, paternity, and shared parental leave. This leave can be taken at any point within 68 weeks of the child's birth, providing flexibility for parents to manage their time effectively during a challenging period.
Notice requirements and leave structure
The Act introduces a two-tiered approach to notice requirements, distinguishing between Tier 1 and Tier 2 periods. During the Tier 1 period, which begins with the day the child starts receiving neonatal care and ends seven days after the care concludes, parents can take leave in non-continuous blocks of at least one week. Notice for Tier 1 leave must be given before the start of each week of leave, but there is no requirement for this notice to be in writing.
In contrast, Tier 2 leave, which can be taken at any time after the Tier 1 period and within 68 weeks of the child's birth, must be taken in one continuous block. Parents must provide written notice 15 days in advance for a single week of leave or 28 days in advance for two or more consecutive weeks. Employers and employees can mutually agree to waive these notice requirements, offering additional flexibility.
Statutory neonatal care pay
In addition to leave, the Act provides for statutory neonatal care pay (SNCP) for eligible employees. To qualify for SNCP, employees must have at least 26 weeks of continuous service and earn an average of at least £123 per week, which is the Lower Earnings Limit. The rate of SNCP is expected to match existing statutory pay schemes for family leave, providing financial stability to families during this challenging period.
Protections and rights
Employees taking neonatal care leave are entitled to the same protections as those on other forms of statutory family leave. This includes protection from detriment or dismissal due to taking or seeking to take neonatal care leave. Dismissal for reasons related to taking neonatal care leave will be deemed automatically unfair.
Furthermore, employees who have taken six continuous weeks of neonatal care leave benefit from enhanced redundancy protection. This protection extends until the child reaches 18 months old, ensuring that parents are prioritised for suitable alternative vacancies in the event of redundancy.
Employer considerations and preparations
Employers must prepare for the implementation of the Neonatal Care (Leave and Pay) Act 2023 by updating their family leave policies and ensuring that HR and management teams are trained on the new entitlements. This includes understanding the eligibility criteria, notice requirements, and the process for applying for neonatal care leave and pay.
Employers should also consider whether to enhance the statutory rights by offering additional benefits, such as higher pay rates or extended leave periods. This can demonstrate a commitment to supporting employees during difficult times and help attract and retain talent.
Impact on families and society
The introduction of neonatal care leave and pay is expected to benefit around 60,000 new parents each year, providing them with the necessary support to care for their newborns without the added stress of work commitments. This legislation acknowledges the unique challenges faced by families with babies in neonatal care and aims to alleviate the emotional and financial burdens associated with extended hospital stays.
By prioritising the well-being of families, the Act also sends a strong message to employers about the importance of supporting employees during critical life events. This can lead to a more inclusive and supportive workplace culture, ultimately benefiting both employees and employers.
Conclusion
The Neonatal Care (Leave and Pay) Act 2023 represents a significant step forward in supporting parents and families during challenging times. By providing statutory rights to leave and pay, the Act ensures that parents can focus on their child's well-being without the added stress of work commitments. Employers must prepare for the implementation of this legislation by updating their policies and training their staff, demonstrating a commitment to supporting employees during life's most challenging moments. As the implementation date approaches, further guidance from the government and Acas is expected to help employers navigate these new rights effectively.
This article was generated using Lex HR, an AI tool designed to assist HR professionals with employment law. If you find the content helpful, please explore Lex HR and sign up for a free trial to see how it can benefit your HR practices.
