The Neonatal Care (Leave and Pay) Act 2023

The Neonatal Care (Leave and Pay) Act 2023 is expected to take effect on 6th April 2025, introducing a new statutory leave and pay for parents whose babies require neonatal care.

This new entitlement to neonatal care leave will apply to employees whose babies are born after 6th April 2025 and are admitted into neonatal care within 28 days of birth and remain in the hospital for at least 7 consecutive days. Employees will be eligible to take leave for up to 12 weeks, in addition to any other parental leave they may be entitled to.

 

Key Features of Neonatal Care Leave:

  1. Day One Right: Employees will qualify for Neonatal Care Leave from their first day of employment.
  2. Statutory Neonatal Care Pay: Employees who meet the eligibility criteria, which is 26 weeks of continuous service and minimum earnings threshold, will qualify for statutory neonatal care pay during their leave.
  3. Flexible Leave Period: Neonatal Care Leave can be taken at any time within the first 68 weeks following the baby's birth

 

What Should Employers Do Now?

As this entitlement comes into effect imminently, employers should take proactive steps to ensure compliance and minimise disruption. Below Alpha HR have put together the main areas to address:

  • Update Employment Contracts:

Employers are legally required to provide employees with information on sick pay and procedures, other paid leave, and notice periods. To comply with the new legislation, Neonatal Care Leave should be included as a paid leave entitlement in employment contracts.

  • Update your Policies:

Employers without a Neonatal Care Leave policy in place should prepare one in time for the Act to come into force. This policy should outline eligibility criteria, when the right applies, notice requirements, the application process, and the rate of, and eligibility to, pay.

For those with existing policies, a review and update would be necessary to ensure compliance with the new legislation.

  • Train your HR Team and Managers:

Providing training for your HR team and managers will ensure they are well equipped to handle requests for Neonatal Care Leave and can support employees effectively.

  • Communicate with Employees:

Keeping employees informed about their new rights is essential. Employers should communicate the changes clearly, ensuring staff understand their entitlement and how to access Neonatal Care Leave when needed.

 

Ensuring compliance with the new Neonatal Care (Leave and Pay) Act 2023 can appear complex and daunting. If you have any queries, please don't hesitate to contact our Alpha team on 0845 450 1561 or email us at alpha@martinkaye.co.uk