March 2025: EAT Lunch Takeaways

What Are the Implications of the Neonatal Care (Leave & Pay) Act 2023 for Employers and Parenta?

From 6 April 2025, parents are entitled to up to 12 weeks neonatal leave for babies who require neonatal care within the first 28 days following birth. Neonatal care does not just cover hospital care but also outpatient care, visits by healthcare professionals and end of life care.

Employees accrue one week’s leave for each week their child spends in neonatal care, up to a maximum of 12 weeks. The leave must be taken in weekly blocks and used within 68 weeks of birth. There are specific notice requirements depending on when the leave it taken and the length of leave requested.

This right is a day one right and applies to babies born on or after 6 April 2025.

Since neonatal leave automatically stops any other statutory leave (like maternity or paternity leave), parents should take it after any other statutory leave.

Employers should update their policies and contracts to include this new statutory leave and ensure they provide appropriate information and support to their employees.

What will the Statutory Sick Pay (SSP) rate be from April 2025 and what changes are expected under the Employment Rights Bill?

From 6th April, the standard SSP rate goes up from £116.75 to £118.75 per week.

Under the Employment Rights Bill, the 3-day waiting period for SSP will be removed - meaning employees will get paid from the first day of sickness rather than from day four.

In addition, low-paid workers who previously did not qualify for any Statutory payment will now be eligible. These workers will receive either 80% of their average weekly earnings or the standard SSP rate - whichever is lower. This will benefit a large number of workers who are placed in a very difficult position when they fall ill. It will hopefully reduce the number of workers attending work when they are unwell and from spreading illnesses across the workforce.

How Will the Employment Rights Bill Impact Paternity Leave?

Currently, employees have to be employed for at least 26 weeks in order to qualify for paternity leave and pay. In addition, an employee is unable to take paternity leave after any share parental leave.

Under the Employment Rights bill, paternity leave will become a right from the first day of employment and will be able to be taken after shared parental leave.

What redundancy protections are available for those on Maternity Leave?

From 6 April 2024, employees on maternity leave have had additional protection in the event a redundancy situation arises at their workplace. That protection begins from the date the employee notifies their employer of their pregnancy and ends 18 months after the birth of the child.

For employees in this protected period, they must be offered any suitable alternative role that is available, ahead of other employees.

The new Employment Rights Bill introduces a ban on dismissal during maternity leave or within six months following the end of the maternity leave period. This is not limited to redundancy dismissals. While there is likely to be some exceptions to this provision, we do not yet know the extent of these.

How do proposed changes to flexible working affect employer responsibilities?

Currently, employers can only decline flexible working requests on the basis of one (or more) of eight statutory reasons.

The Employment Rights Bill adds an additional obligation on employers by requiring them to not only list the specific statutory reason(s) but also to justify why it is reasonable to rely on that reason. This added transparency means employers should ensure they have considered the application reasonably and have valid, well documented reasons if denying a request.

What are the changes to unfair dismissal rights under the Employment Rights Bill?

Unfair dismissal will become a day one right, removing the current two-year service requirement for employees to bring claims in the Employment Tribunal.

This change significantly alters the landscape for employers. The Bill lists an “initial period of employment” during which a “light touch” process can be followed before dismissal. However, significant care will need to be taken in the proper use of and review during probationary periods and a fair process undertaken when considering any termination of contract/dismissal.