The Neonatal Care (Leave and Pay) Act 2023

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The Neonatal Care (Leave and Pay) Act 2023 is set to bring vital support for parents of newborns in neonatal care. This new law provides specific leave and pay entitlements, easing the burden on families during an incredibly challenging time.

Previously, parents facing neonatal treatment relied on annual leave or parental leave to care for their baby, adding to the emotional and financial strain. This new legislation grants specific neonatal care leave, helping parents manage both personal and professional responsibilities more effectively.

Perks for Parents

One of the most noteworthy changes, which could be actioned as early as April 2025, is the introduction of up to 12 weeks of neonatal care leave. Parents can take this leave as well as their existing maternity, paternity, or shared parental leave. It applies if the baby requires medical or palliative care for at least 7 consecutive days within the first 28 days of birth. Better still, it is a day-one right, available to employees from the very start of their job. A further change is statutory neonatal care pay, subject to employees having at least 26 weeks of service and earnings averaging £123 per week.

Employment Rights and Protections

Employees will also have the protections of other family-related leave, including protection from detriment and discrimination. Employers play a crucial role in supporting families of their workforce. By updating leave policies and ensuring clear communication about these new rights, employers will not only ensure compliance with the law but also achieve a positive and inclusive environment that supports employees during potentially difficult times.

For employers, the Act brings practical implications. Firstly, parents may opt to extend their time off by transitioning from maternity leave to neonatal care leave once their statutory maternity pay concludes at 39 weeks.This could extend their paid leave to almost a year, although at statutory rates, unless the employer offers enhanced pay.

With up to 12 weeks of paid leave per parent, the new law allows fathers and partners greater flexibility to share caregiving duties, extending their paid leave beyond the standard 2 weeks of paternity leave. It also complements Shared Parental Leave, offering additional flexibility so both parents can focus on their child and family during that crucial time after birth.

Application of the Neonatal Care (Leave and Pay) Act 2023:

Extended Neonatal Leave: The father is eligible for up to 12 weeks of paid neonatal care leave since the baby is in neonatal care for over seven days. This leave follows his paternity leave, without returning to work prematurely.
Eligibility and Pay: The father receives statutory neonatal pay at the same rate as paternity pay, ensuring financial support during the NICU stay.
Flexible Leave: The leave can be taken anytime within the baby’s first year, useful for follow-up visits or additional care after NICU discharge.
Employer Obligations: The employer must provide the leave and cannot penalise the father, ensuring job security.

Employers play a key role in implementing these changes, ensuring that policies are updated and communicated effectively. Ultimately, this law enables parents to prioritise their child's health while balancing their professional responsibilities and creating a supportive work environment.

How We Can Help:

Navigating the complexities of this new legislation can be challenging. Our team of experts can provide:

Comprehensive policy reviews and updates.
Guidance on eligibility and leave calculations.
Training and resources for managers and HR staff.
Support in creating a compassionate and inclusive workplace.

Don't leave compliance to chance. Contact us today for expert advice and support.