6 steps to get ahead of the new laws on neonatal benefits
More than 90,000 babies are admitted into the UK’s neonatal units each year, around 15% of all UK births – many for an extended period. Despite this, many employers do not have policies in place to support employees in this stressful and distressing time, forcing anxious parents to take holiday, unpaid leave, or use their maternity or paternity leave allowances.
This will change when the Neonatal Care (Leave and Pay) Act comes into force in 2025, having been given Royal Assent on 24 May this year. The Act provides the parents of babies who require neonatal care with an additional 12 weeks’ leave and pay, on top of their standard maternity or paternity benefit allowances.
Neonatal care refers to babies born prematurely (before 37 weeks), poorly, or with a low birth weight, requiring admittance into a neonatal unit. The Act intends to allow parents time to spend with their baby while they receive medical care, without affecting the time that they get to spend together at home as a family.
What the Act will mean
Employees will be entitled to benefit from neonatal care leave from their first day of employment, known as a ‘day one right’ and mirroring maternity leave rights.
The additional neonatal leave will be available to parents whose babies are admitted to hospital in the first 28 days of their lives and who then have a hospital stay of seven days or more.
The duration of neonatal leave will depend on how long the baby is in hospital and can range from one to 12 weeks.
To be eligible for neonatal care pay (as opposed to just the leave element), employees will need to have 26 weeks of continuous employment immediately prior to neonatal leave commencing.
During the period or neonatal care leave, employees retain the same benefits and protections, and are bound by the same obligations, as they would be in periods of maternity or paternity leave. Employees will be protected from being discriminated against for taking neonatal leave.
Once the legislation is introduced, employers will need to review and rework employee handbooks and ensure that they are up to date with and following the requirements for neonatal leave and pay.
Steps employers need to take:
Although the legislation is not expected to be formally introduced for another 18 months, with wellbeing and social conscience now at the forefront of what employees seek when changing job roles, there is much to consider beforehand.
1. Be proactive
If you do not yet have a formal neonatal policy, think about introducing one now. Savvy employers such as Marks and Spencer will introduce these entitlements ahead of time.
2. Do the paperwork
Review and rework employee handbooks and ensure that they are up to date with and following the requirements for neonatal leave and pay.
3. Think outside the box
Health issues may not be limited to the first few weeks for babies who require neonatal care. Consider allowing further time off or flexible working for the parents of children with ongoing health needs – and introducing this for all employees who have dependents, not just those who require neonatal care.
4. Be inclusive
Look to introduce benefits that would support not only parents of babies in neonatal care, but the entire employee population when life gets difficult or complicated. Consider bespoke and personalised services and those that offer assistance on a broad range of life events, rather than those which may exclude certain demographics.
5. Alleviate stress
Employees navigating the illness of a new baby are in the midst of an immensely difficult and challenging time. Consider what other support you can provide (coaching, EAPs, counselling, etc) to help them navigate the process and educate them on what to expect, any practicalities and logistics. Be as considerate and helpful as possible and ensure information and guidance is easy to find.
6. Be data aware
While colleagues often rally round in situations such as these, remember that the details of the baby’s condition are private and subject to data protection laws, so be careful about sharing information and ensure you follow the employee’s wishes.
It is broadly accepted that family friendly policies enhance employee loyalty, retention and happiness. With a recent raft of legislation and parliamentary bills seeking to enhance these rights, companies who do not act now may find themselves on the back foot once legislation comes into force.
Supplied by REBA Associate Member, ApiaryLife
Life stage and life event support delivered by experts with legal backgrounds.