The Neonatal Care (Leave and Pay) Act 2020 is expected to enter into force on April 6, 2025, following much speculation and debate. The new legislation was designed to help parents of premature babies who are in neonatal units, and it must be enforced at all employers.
This article will explain what new legislation means to employees and employers, as the introduction is fast approaching.
Who can take advantage of the neonatal care leaves?
The Neonatal Care Leave is available to parents who have parental responsibility for a newborn admitted to neonatal treatment within the first 28 day of its birth. This includes parents and adoptive parents as well as partners of the mother.
If the baby is in neonatal care for more than seven days, they must be admitted to a neonatal hospital.
Day One Right
All employees (except workers and self employed contractors) have the right, under the new legislation to receive an additional 12 weeks of leave, and possibly extra pay, if they meet certain criteria. The new legislation gives employees who meet certain criteria the right to receive up to 12 weeks’ extra leave and possibly additional pay.
The ‘top-up’ of maternity/paternity leaves
Currently, parents of newborns who need neonatal care cannot receive extra time off. Many parents take advantage of their annual leave or request time off from their employers to spend time with their newborn babies.
Parents may return to work when their child is still receiving neonatal treatment, particularly if paternity leave has already been exhausted.
The Neonatal Care Leave can be used as a way to ‘top-up’ the maternity/paternity arrangements. Parents can spend more time with their newborns without worrying about exhausting their annual leave.
Neonatal care leave: stipulations
There are a few restrictions on the payment of neonatal leave. For employees to be eligible for the statutory payment due for neonatal care leave, they must have worked at least 26 consecutive weeks and earned at least PS123 per week starting April 6, this year.
Parents who successfully secure neonatal leave pay can receive it up to 12 weeks as long as the leave is taken in the first 68 week of the child’s birth.
Employers should be aware of the implications
The new legislation is expected to bring many benefits to parents and employers, but the consequences for employers may not be so favorable.
Costs increase
The new legislation is widely accepted to increase costs for employers who will have to hire temporary staff for a longer period of time, resulting in higher salary expenses.
Increased administrative costs
There’s also the administrative aspect to consider. Update all relevant policies and procedures to reflect the new duties for neonatal care.
The guidance should be added to the family-friendly policies that they already have, such as their policies on shared parental leave or adoption leave.
Risk Increase
Employers should be cautious, as well as being pragmatic and updating their policy. Legally, parents who have taken a break for more than 12 weeks are entitled to return to work.
If the job has been made redundant, but it was changed or no longer needed while they were away, employers must offer an alternative role or give them priority in applying for other positions.
Employees who take a Neonatal Care Leave are protected from being dismissed, redundancy or treated negatively for taking it.
Supportive employers
Employers are not strangers to adopting new legislation. This new law, however, is another legal duty that employers must understand and embrace in every way possible.
Employers who have already taken the time to familiarise themselves with this new legislation are reaffirming their commitment towards a supportive work environment. The Neonatal Care Leave Act forces those employers who have not yet started to implement the necessary changes.
Many governments in the past have talked about introducing neonatal leave. Now we know all the details and mechanics of the legislation. Employers need to be proactive, support their employees and avoid being caught by yet another important piece of employee-focused law.
