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The Neonatal Care Act: Key Steps and Insights for Employers

January 22, 2025 | By: Gemma Frain

The Neonatal Care (Leave and Pay) Act 2023 is set to take effect in April 2025, marking a significant step forward in supporting employees whose newborn requires neonatal care.

We have summarised what you need to know.

What is the Neonatal Care (Leave and Pay) Act?

The Neonatal Care (Leave and Pay) Act allows parents up to 12 weeks of paid leave if their newborn requires neonatal care (having been born prematurely or sick) within the first 28 days of being born. This leave is in addition to other statutory leave entitlements, such as maternity, paternity, and shared parental leave. The objective is to alleviate the stress and financial burden faced by parents during this challenging time.

Key provisions include:

  • Eligibility: It will be a day one right for employees and will apply to parents of babies admitted to hospital up to the age of 28 days and who have a continuous stay in hospital of 7 full days or more.
  • Entitlement: Up to 12 weeks of neonatal leave and statutory pay, if eligible, on top of any other leave they may be entitled to, including maternity and paternity leave.
  • Protection: Employees taking neonatal leave will have their job protected and will be protected from discrimination or detriment for exercising this right.

Steps for Employers

You should now begin preparations ahead of April 2025, and consider the following steps:

Review and Update Policies

  1. We will assist you with updating your HR documentation in line with the new legislation and will also have a specific policy available if requested. Therefore, there is no action from you on this just yet and our documentation department will be in touch in due course.

Amend Employment Contracts

  1. Ensure employment contracts reflect the new entitlements where necessary, especially for roles that involve enhanced parental leave provisions. As above, our documentation department can assist you with this.

Train HR and Management

  1. Educate your HR personnel and line managers about the new rights to ensure they can provide accurate guidance and support to employees.
  2. Train teams to handle sensitive conversations with empathy and professionalism. Please get in touch if you require any assistance with any training needs.

Update Payroll Systems

  1. Coordinate with your payroll provider or in-house payroll team to implement the statutory neonatal pay framework.

Communicate with your Employees

  1. Raise awareness among your workforce about the upcoming changes.

If you have any queries on this topic, you can contact our advice line who will be happy to assist you.

More Information

For more Employment Law insights please visit Wirehouse Employer Services’ website here or seek advice by contacting us directly at info@wirehouse-es.com or 033 33 215 005. 

About the Author
Gemma Frain
Gemma Frain
Gemma Frain, Author at Wirehouse Employer Services

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