The UK Government will introduce new legislation in 2025, which will grant employees a right to statutory neonatal pay and leave for babies born after or on this date. Lisa Patmore examines the benefits for employees and implications for HR
Supporting parents who have babies that need neonatal treatment through the introduction statutory neonatal leave (SNCL), and paying them for it (SNCP), represents another important step in advancing family rights. It also provides new parents with a valuable safety net. These new rights, however, present a whole new set of challenges to businesses.
What’s involved?
The right to a newborn care leave begins on the day of birth, so there is no requirement for a minimum period of service. This new right has many details, but it means that parents, adopters, and their partners, who are responsible to raise the child, can take 12 weeks of SNCL in addition to any other statutory leave, such as maternity leave or paternity. The SNCL has to be taken within 68-weeks of the birth of the child. It is also dependent on whether or not the baby receives neonatal care in its first 28 days.
The employee is entitled to a week of SNCL per week that a child has received uninterrupted neonatal treatment, up to 12 weeks.
The finer details include the fact that SNCL is taken in weekly blocks. SNCL does not accumulate in the first week of neonatal care. Caregivers must also meet the criteria for eligibility.
SNCP, unlike SNCL is not a right that starts on the first day of employment. To qualify, employees must have 26 weeks of service. However, the calculation is similar to that for statutory maternity pay.
SNCP rates are based on the employee’s normal earnings. They are calculated the same as statutory maternity payments and paid the same as statutory paternity pay or shared parental pay. Employees who qualify for statutory maternity pay, adoption or paternity will usually also be eligible for SNCP. Interestingly, individuals who aren’t employees can still qualify for SNCP even if they do not qualify for NCL.
Adoption and surrogacy are treated differently. There are special provisions to maintain eligibility for NCL in cases where the child has died or, simply put, when adoptions or surrogacys don’t go as planned.
Employees who have taken or recently returned from SNCL receive redundancy protection. This ensures they are given priority in finding suitable alternative roles. Also, there are additional protections from detriment or dismissal.
The details
Employees must inform their employer before taking SNCL and provide key details about the child’s care and where it is being provided. The notice period depends on whether the leave is being taken during Tier 1 or 2 of the period.
Tier 1 is a period of immediate care, which begins when the child receives neonatal care, and ends seven days later. Tier 2 refers to any remaining leave outside of a Tier 1 period. The first day of the absence must be notified before the leave begins, or as early as possible. Tier 2 leaves require a notice between 15 and 28 days, depending on how long the leave is requested. In the Tier 1 period, SNCL may be taken on non-consecutive days but in the period of Tier 2, it must be taken on consecutive days.
Like many other statutory entitlements to family leave, there are detailed provisions on the job roles and terms that returners from SNCL can expect. Employees returning from SNCL or those who have taken it recently also get redundancy protection. This ensures they are given preference for alternative roles. Also, there are additional protections from detriment or dismissal.
The SNCL also has specific provisions regarding how it interacts with the other types of statutory leave and impacts on when SNCL is available.
There is a lot of confusion in the details. Employers should be aware of the complexities involved in calculating qualifying period and the broad definition of neonatal health care, particularly when it is difficult to differentiate between interrupted or uninterrupted care.
Business impact
This new right clearly represents a positive step in supporting parents. It’s also a call to employers.
It is not easy to understand how SNCL or SNCP work. Until HR teams are accustomed to the concept, it’s hard to overstate the importance of a clearly defined policy. The key will be training.
The HR team must also ensure they are aware of the start and end dates of neonatal care, keep track of all statutory leaves, and have systems in place for retaining proof of entitlement. They should also ensure notice requirements are met and that SNCP is paid correctly. These systems are not a luxury, but a necessity for HR teams who have to deal with additional administrative duties.
When you take a long-term perspective, things look more positive. Businesses that are “family-friendly” tend to be more loyal and satisfied with their employees, which leads to higher retention rates. Employees who are supported through a tough time will be more motivated and engaged when they return to their jobs.
Businesses can improve their employer branding and attract more talent by implementing effective and efficient neonatal policies.
Businesses that offer more than the minimum statutory provisions for neonatal leaves will reap even greater rewards.
Bottom line
This law is a landmark for working parents. It’s a big deal for fathers, partners, and even partners of people on adoption leave who can exhaust their paternity entitlement if their baby stays in neonatal for an extended period of time. They will then have to take annual leave, compassionate leaves, or unpaid parental leaves.
If HR departments want to ensure that the process runs smoothly, they should prioritize updating policies, educating their managers, and maintaining good records. HR departments that take a proactive approach can comply with the law, but also build a culture of support and a workplace that values the work-life balance as well as the wellbeing and health of their employees.
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