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New statutory right to neonatal leave and pay from April 2025

The government has announced this week that the new statutory right to neonatal leave and pay will come into force from 6 April 2025 for eligible employees. Draft regulations have now been published setting out further detail on how the new right will work and bringing the statutory provisions into force.

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. Neonatal care is defined in the regulations and includes medical care received in a hospital and also care a child receives on leaving hospital where their care remains under the direction of a consultant and ongoing monitoring. It also covers the provision of palliative or end of life care.  

An employee must take any statutory neonatal leave before the end of 68 weeks beginning with the date of the child's birth. Regulations provide that it can be taken as non-consecutive or consecutive weeks depending on when the leave is taken (for example, whether it is taken while the child is still receiving neonatal care or where it is taken once the child is out of such care and added onto the end of a period of statutory maternity leave). The regulations make specific provision for where more than one child is born as result of the same pregnancy and both require neonatal care.

In line with the existing statutory family leave rights, during a period of statutory neonatal leave an employee will continue to benefit from their terms and conditions of employment, except for remuneration. They will also have a right to return to the same job or to another job which is both suitable and appropriate depending on when they exercise their right to return.

The regulations also provide for protection against detriment or dismissal for exercising the statutory leave entitlement, as well as providing for enhanced protection on redundancy in respect of offers of suitable alternative employment.  

Employees taking statutory neonatal leave may also benefit from statutory neonatal care pay where they meet the required continuity of service requirements and minimum earnings threshold. Again, this will operate in the same way as the existing statutory pay entitlements on family leave.

What does this mean for employers?

Around 40,000 babies spend over one week in neonatal care each year and the government states that "around 60,000 parents will be eligible and around 34,000 parents will take up the new right each year".

The new right will be welcomed by many parents who want to take time away from work to care for a child receiving neonatal care; the government is seeking to ensure that "they are no longer in the incredibly difficult position of having to choose between risking their job and spending time with their baby at a period which is already worrying and stressful for parents". The introduction of the new right is also intended to "send a signal to employees and employers about the importance and value of recognising this stressful period and providing adequate support for parents in such circumstances". At present, employees are only able to take time away to support their baby via existing statutory leave entitlements such as such as maternity leave, paternity leave, shared parental leave and unpaid parental leave or to use their holiday entitlement.

Employers will now need to ensure that they have policies in place reflecting this new statutory entitlement. The statutory regulations expressly provide for an employer to operate separate notice requirements and to offer enhancements to the statutory position.

It will also be important to ensure that HR and managers are aware of the new entitlement and that it applies to both parents who qualify under the regulations – not only so that they can provide reassurance to employees at what will inevitably be a stressful time but also to ensure that workloads and absences are managed effectively and appropriately. Employers will also need to ensure clear communications and manage expectations particularly where a baby is born before 6 April 2025 but requires neonatal care.

The government has confirmed that it will be publishing guidance on the new right ahead of 6 April 2025 and we are also expecting guidance from Acas to support employers.  

The government sees this new right as part of its delivery of its Plan for Change "supporting working families and protecting working people's payslips". The government is currently carrying out a review of parental leave and we can expect to see more developments supporting working families. Please visit our employment law reform microsite which sets out details of proposed employment law reforms.

Please contact your usual Osborne Clarke contact to discuss how we can support you.

Our latest employment update webinar

Last week we hosted our latest employment update webinar where associate directors Nick Haywood and Emma Wills-Davies looked at the latest issues impacting employers including the new sexual harassment laws, challenges in moving from hybrid working to office working and unfair dismissal reforms. If you missed the webinar, you can view the recording.

If you would like to discuss any of the issues raised please do contact Nick, Emma or your usual Osborne Clarke contact.

HR pensions spotlight: what should employers look out for in 2025? 

Last year was a busy year in UK pensions and this year is likely to follow suit. Here are some key pensions developments that employers will need to look out for and action in 2025. Please do contact pensions partner, Claire Rankin if you would like support on these developments.