Neonatal care leave: everything employers should know

With new laws on neonatal care leave coming into effect, it’s essential for employers and to understand the legal requirements and how they can impact both employees and businesses. 

In this blog post, we will discuss what neonatal care leave is, the legal framework, key actions for employers, benefits of implementing strong policies, and how our team of experts can help.

What is neonatal care leave? 

Neonatal care leave is a new statutory entitlement designed to support parents of babies who require specialist hospital care after birth.  

This type of care is provided when a baby is admitted to a neonatal unit due to premature birth, illness, or other medical complications. 

The new legislation will allow eligible employees to take additional time off work to care for their newborn baby without having to consider or deal with the immediate pressure of returning to work. 

Employees who have a child that requires neonatal care for at least seven continuous days within the first 28 days of life are eligible. This applies to parents, adoptive parents, and guardians. 

The new legislation will provide parents with additional support beyond their current entitlements.

The legal framework 

The Neonatal Care (Leave and Pay) Act 2023 is the primary legislation introducing this right.  

From the 6th of April 2024, the Act will grant eligible employees access to: 

• Up to 12 weeks of neonatal care leave, in addition to other parental leave entitlements. 

• Statutory neonatal care payments for qualifying employees. 

• Protection from dismissal or detriment for employees taking neonatal care leave. 

This leave is to be taken following other statutory entitlements, such as maternity, paternity or shared parental leave.   

For example, maternity leave must be taken in full before neonatal care leave begins, and employers must ensure compliance with statutory leave entitlements when combining multiple types of leave.  

Key actions for employers and managers

To effectively implement the Neonatal Care (Leave and Pay) Act 2023, employers must take several important steps to ensure compliance and provide support for employees. These include: 

Create a comprehensive company policy 

A well-structured neonatal care leave policy should be easily accessible and clearly outline: 

• Eligibility criteria: State who qualifies for neonatal care leave, including service length and other requirements. 

• Leave request process: Clarify how employees can make a request, and what documentation is required. 

• Pay entitlements and leave duration: Outline the situations in which statutory neonatal care pay is applicable, as well as the standard amount of leave that may be taken. 

• Interaction with other leave types: Explain how neonatal care leave works alongside maternity, paternity, shared parental, and unpaid leave. 

Establish clear communication channels 

Employers and managers should establish clear and confidential communication channels to support employees requesting neonatal care leave.  

This ensures that employees feel comfortable discussing their circumstances and can access the leave they are entitled to without unnecessary stress. Key steps include: 

• Designating a dedicated HR contact: Assigning a specific person or team to handle neonatal care leave requests ensures consistency and privacy. 

• Providing clear application guidelines: Employees should have easy access to information on how to apply and relevant deadlines. 

• Training managers to handle requests sensitively: Line managers should be equipped with the knowledge and empathy to support employees. 

• Maintaining confidentiality: Employers should reassure employees that their personal circumstances will be handled discreetly and with respect. 

Update HR systems 

Managers and employers should update internal systems to accommodate neonatal care leave. This includes: 

• Modifying payroll systems: Updating payroll systems to accurately calculate and administer neonatal care leave pay, ensuring employees receive their entitlements correctly and on time. 

• Updating absence tracking: Adjusting internal systems to categorise neonatal care leave separately from other types of leave, allowing for clear record-keeping and easier reporting. 

• Ensuring compliance with government reporting requirements: Implementing necessary changes to meet legal obligations, ensuring accurate documentation and timely submissions. 

Ensure employee awareness of rights and entitlements 

Employers should proactively inform employees about neonatal care leave through: 

• Employee handbooks: Clearly outlining eligibility, entitlements, and the process for applying in employee handbooks, ensuring that this information is easily accessible. 

• Employee training sessions: Educate managers about neonatal care leave policies so that they can confidently support employees and answer any questions. 

• Internal communications: Regularly sharing updates and reminders in newsletters or emails to ensure all employees are aware of their rights. 

Provide sensitive and supportive guidance 

Neonatal care situations can be highly stressful for employees. Employers should: 

• Offer compassionate and flexible responses to leave requests: Recognise the emotional and practical challenges that employees will be facing and accommodate their needs with understanding and flexibility. 

• Provide guidance on available support resources: Ensure that employees are aware of resources such as counselling services, employee assistance programmes, or financial assistance to help them navigate this difficult time. 

Introduce procedures for handling leave requests 

Employers should establish clear procedures for handling leave requests, ensuring a smooth and supportive process. This includes: 

• Requiring employees to provide reasonable notice where possible: Encourage early communication to help with planning while remaining flexible in urgent or unexpected situations. 

• Setting clear response times for approval or further discussions: Ensure timely decisions so employees receive prompt confirmation and can focus on their family without unnecessary stress or uncertainty. 

Develop a return-to-work plan for those taking neonatal care leave 

A structured return-to-work plan should be developed to ease the transition, ensuring that employees feel supported and capable of balancing work and personal responsibilities. This plan should consider: 

• Flexible work arrangements: Offer options such as remote work, adjusted hours, or hybrid schedules to help employees manage their new circumstances while reintegrating into the workplace. 

• Phased return options: Allow employees to gradually increase their workload over a set period, giving them enough time to adjust physically and emotionally. 

• Regular check-ins: Schedule regular conversations with managers or HR to assess employee wellbeing, address any concerns, and make necessary adjustments. 

Offer additional support where possible

Employers can support returning employees by providing: 

• Access to mental health support: Offer employee assistance programmes (EAPs) to help them manage challenges and adjust to their return. 

• Flexible unpaid leave: Give employees the flexibility to take extra unpaid leave to deal with personal matters, offering peace of mind during their transition back to work. 

Ensure to keep medical information confidential

Employers must handle all medical information with strict confidentiality. They must: 

• Store records securely: Ensure all neonatal care leave documents, whether physical or digital, are protected from unauthorised access. 

• Restrict access: Limit sensitive information to HR or designated managers involved in processing leave requests, maintaining employee privacy. 

• Ensure legal compliance: Adhere to UK GDPR and the Data Protection Act 2018, ensuring all personal and medical data is handled lawfully and ethically. 

Benefits of implementing effective neonatal care policies

Implementing a neonatal care leave policy provides significant advantages to both employees and employers. These benefits include:  

Fosters a supportive culture 

A supportive approach to neonatal care leave helps create a positive work environment.  

By providing leave and maintaining an open-door policy for employees to express concerns about topics such as neonatal care, you show that you are an understanding, compassionate employer.  

This in turn creates a workplace culture where employees feel valued and supported during challenging times. Thus, improving employee morale and retention. 

Supporting employees during neonatal care leave demonstrates a genuine commitment to supporting their wellbeing. 

When businesses prioritise their employees’ needs during critical life events, they are more likely to feel valued, resulting in higher job satisfaction, loyalty, and a stronger emotional connection to their employer. 

This not only reassures an employee about their importance, but also reduces employee turnover, lowering recruitment and training costs while maintaining a stable, motivated workforce. 

Enhanced business reputation as a family-friendly employer 

Companies that actively support working parents, particularly those dealing with the challenges of neonatal care, gain a reputation as empathetic, family-friendly, and socially responsible employers. 

This not only improves employer branding but also attracts top talent, particularly those who value workplace flexibility and support. This strengthens the business’ competitive edge in the job market, helping to attract and retain skilled professionals. 

Reduced stress and anxiety for employees 

Managing work and personal responsibilities during a neonatal emergency can be overwhelming, as parents navigate the emotional and physical demands of caring for a vulnerable newborn.  

A well-structured neonatal leave policy provides employees with the necessary time, job security, and financial stability to focus entirely on their child’s health and wellbeing. 

By alleviating these concerns during this critical period, employers help to reduce stress and promote better long-term outcomes for both employees and their families. 

Legal compliance and avoiding potential legal issues

Employment laws continue to evolve to provide greater protections for working parents, particularly in areas such as neonatal care leave.  

As legislation adapts to meet the needs of modern families, it is essential for businesses to stay up-to-date and comply with relevant regulations.  

Implementing a clear and well-structured neonatal care leave policy not only ensures legal compliance, but also demonstrates a company’s dedication to fair, ethical, and family-friendly workplace practices.  

Organisations can reduce their risk of legal disputes by proactively addressing these requirements. 

How Sapphire HR can help

At Sapphire HR, we can support your business in creating a clear and compliant neonatal care leave policy. 

With expert guidance, we ensure your policies align with the latest legislation while providing the best support for your employees. 

Our HR Unlimited service gives you access to professionally crafted policies, regular updates, and expert advice whenever needed.  

We take the complexity out of HR, so you can focus on running your business while ensuring your employees get the support they deserve. 

Contact a member of our team today to learn more.