The neonatal care act and its impact on businesses

The Neonatal Care (Leave and Pay) Act

The Neonatal Care (Leave and Pay) Act, which was granted Royal Assent on May 24th, seeks to improve the situation for thousands of parents. The Act enables parents to take up to 12 weeks of paid leave, in addition to their current maternity and paternity benefits. This will provide parents with more time to spend with their newborns during a challenging and distressing period.

As per the new regulation, employees will be eligible for neonatal care leave from the first day of their new job. If an employee has 26 weeks of continuous service and earns more than the lower earnings limit, they can benefit from statutory neonatal pay.

Parents of newborns who are hospitalized for a continuous stay of seven or more full days up to the age of 28 days can take leave.

Parents who are eligible for neonatal leave will receive the same employment rights and protections as those who take other relevant family-related leave. This includes protection from any negative consequences or discrimination resulting from taking or requesting neonatal leave.

Although a few employers offer support to families dealing with neonatal care, it is not a widespread practice.

Smaller companies may not have the financial resources to provide such benefits. By making it a legal requirement, businesses can claim neonatal pay as they would for other statutory payments, ensuring that no company is at a disadvantage.

How can employers prepare

While the final stages of the Neonatal Care Act’s legislative process are being confirmed, employers can take proactive measures to prepare for its implementation.

You could review your current practices and policies to ensure they effectively support parents during a challenging period.

Having sensitivity and empathy is crucial when dealing with an affected employee. It is essential to give them space to process their situation.

It’s important to establish the most effective means of communication with the employee in the upcoming days and weeks, and also discuss their statutory and contractual leave entitlements.

You could also provide additional support to your colleagues who may be struggling at work. Consider a phased return or allowing them to work from home for more flexibility.

It may also be helpful to create a documented procedure in your organisation to ensure that everyone, including managers, understands what is appropriate in these situations.

Employer advice on the Neonatal Care Act

Although the act isn’t coming into force for a while yet, it’s still important for employers to review their policies. It’s the perfect time to assess how your business supports employees going through this difficult time.

We provide free support if you’re an employer and need advice on HR and employment issues. We offer 24/7 assistance to guide you through the processes and procedures.

Please speak to one of our HR and employment law advisors free at 0800 144 4050 or fill in the form here to request a callback.