Statutory neonatal leave and pay introduced from 6 April 2025
Statutory neonatal leave and pay introduced from 6 April 2025
Implementation Status (as at January 2025)
Neonatal Care (Leave and Pay) Act 2023.
Draft regulations introduced setting out a detailed framework and bringing the new right into force from 6 April 2025.
- Action
Ensure policies are introduced (or revised) to reflect the new statutory entitlement.
Train HR and managers on the new entitlement; not only so that appropriate reassurance etc. can be provided to employees at what will inevitably be a stressful time but also to ensure managers are aware of their obligations and that workloads and absences are managed effectively and appropriately.
Communicate the new entitlement to employees and manage expectations, particularly for those employees where their baby is born prior to 6 April and requires neonatal care.
- In detail
The right to benefit from statutory neonatal leave will be a day one right (employees do not need a qualifying period of service).
It will apply to children born on or after 6 April 2025 where neonatal care starts within 28 days of birth and where the child goes on to spend seven or more continuous days in neonatal care.
Qualifying employees will be entitled to one week's leave for every week their child spends in neonatal care, capped at 12 weeks.
An employee must take any statutory neonatal leave before the end of 68 weeks beginning with the date of the child's birth. Regulations set out detail on how the leave can be taken and the applicable notice requirements.
In line with existing family leave rights, during a period of statutory neonatal leave an employee continues to benefit from their terms and conditions of employment (except remuneration) and has a right to return to the same job or, depending on when they return, one that is suitable and appropriate in the circumstances. Employees who also have enhanced protection on redundancy in respect of offers of suitable alternative employment and a right not to be subjected to a dismissal or detriment for exercising their statutory right.
- Impact
It is estimated that around 40,000 babies spend over one week in neonatal care each year and that around 60,000 parents will be eligible and around 34,000 parents will take up the new right each year. The government has stated that as well as providing support to parents at what is inevitably a "worrying and stressful" time, the introduction of the new right is intended to "send a signal to employees and employers" about the importance and value of recognising this is the case.
At present employees are only able to take time away to support their baby via existing statutory leave entitlements such as maternity leave, paternity leave, adoption leave, shared parental leave and unpaid parental leave, or to use their holiday entitlement.
Statutory paternity and unpaid parental leave will become day one rights
Paternity leave and unpaid parental leave will become day one rights and the current restriction on taking paternity leave after shared parental leave will be removed.
Implementation Status
Part of the Employment Rights Bill.
Regulations will be required to amend existing statutory regulation and implement the reforms.
"The majority of reforms will take effect no earlier than 2026".
The House of Commons Women and Equalities Committee has launched an inquiry to examine options for reform of paternity and shared parental leave; it is conducting a call for evidence which lasts until 31 January 2025.
- Action
Managers will need to be made aware of and receive training on the changes, including managing a potentially larger number of leave requests, particularly in relation to unpaid parental leave around peak times e.g. school summer holidays. Policies and procedures will need to be amended.
Employers should follow the review on parental leave and carers leave closely to see how closely their current policies align and anticipate where future changes may be needed.
Employers may wish to consider now how they can support kinship carers, particularly with an older workforce who may be grandparents or other relatives/carers supporting young people. It has been indicated that this may form part of the government's wider review of the parental leave system.
- In detail
Paternity leave will become a day one right. At present employees must have one year's service.
Unpaid parental leave will become a day one right. At present employees must have one year's service.
The House of Commons Women and Equalities Committee has launched an inquiry to examine options for reform of paternity and shared parental leave (SPL). In a Call for Evidence it has specifically requested submissions on:
The extent to which SPL has given parents' choice and flexibility in how they share parenting responsibilities.
The longer-term equality impacts and labour market impacts of SPL, particularly for women.
Reasons for low take-up of SPL and possible solutions.
Addressing inequalities in SPL take-up (including inequalities related to ethnicity, income, education and occupational status).
Alternatives to the current "maternal transfer" model of SPL.
Lessons from other countries.
The government has stated that it will also review the implementation of carer's leave and consider whether there is a need to change the current approach, together with the benefits of introducing paid carer's leave.
The government has indicated that kinship carers (who care for children who cannot live with their parents) will be included in the review of the parental leave system.
- Impact
At present, only employees with one year's service, have a right to take unpaid parental leave per year of up to four weeks per year (subject to maximum of 18 weeks in total) in respect of children under the age of 18.
To take two weeks' statutory paternity leave, employees need 26 weeks' service, ending with the week immediately before the 14th week before the expected week of childbirth (or the week in which an adopter is notified of a match).
Where an employee is entitled to both paternity leave and pay and shared parental leave and pay, the paternity leave and pay must be taken before the shared parental leave and pay (otherwise their entitlement to paternity leave and pay is lost).
The government wishes to align paternity leave with other family leave entitlements (such as maternity and adoption leave); "simplifying" the system and facilitating "better employer and employee understanding of parental rights", as well as ensuring that these factors do not restrict job mobility. Removing the restriction for paternity leave to be taken before shared parental leave will also provide greater flexibility for employees to take advantage of the different types of leave available.
The qualifying service requirements for statutory pay in respect of leave will remain.
Statutory right to unpaid bereavement leave
A new statutory right to unpaid bereavement leave will be introduced.
Implementation Status
Part of the Employment Rights Bill.
There will be consultation on regulations to provide the detail on unpaid bereavement leave.
"The majority of reforms will take effect no earlier than 2026".
- Action
This new bereavement leave right will need to be considered in light of any existing compassionate leave policy. A new policy may need to be drawn up or existing policies amended.
Managers should be trained to ensure they are aware of the new right and how it sits with any existing compassionate leave policy and the existing statutory leave for bereaved parents of a child.
- In detail
Employees will have a new statutory right to unpaid bereavement leave. Regulations will specify the qualifying relationships, the minimum period of leave (at least one week), and also the period in which the leave must be taken (which must extend to at least 56 days after the person's death). This will be a day one right.
Parents will still be able to rely instead on the existing statutory right to two weeks paid parental bereavement leave following the death of a child under 18 or a still birth.
The existing protections on the employee's right not to be subjected to a detriment or dismissal for reasons relating to taking statutory bereavement leave on the death of a child will be extended to this wider right.
- Impact
Employees currently have a day one right to take two weeks' bereavement leave if a child under the age of 18 dies (and those with 26 weeks service, ending with the week before the child died, are also entitled to receive statutory parental bereavement pay). Employees taking parental bereavement leave are also protected from detriment and dismissal. However, there is no general right to take bereavement leave outside of this (for example, when a spouse, parent or sibling dies), unless an employer operates its own compassionate leave policy.
There is an existing statutory right to "reasonable" unpaid time off for dependants but, while this would cover an immediate emergency following death, it "does not permit a person to take time off to grieve or recover from the mental impact of their bereavement". Annual leave is also not always available
It is suggested that utilisation of this new statutory right may be low given that it is unpaid and, under the government's proposals, bereaved employees who are signed off sick will be entitled to statutory sick pay from day one of absence.
