The Neonatal Care (Leave and Pay) Act 2023
As of April 6th, 2025, parents of newborns who need neonatal care will have access to a new statutory right to paid leave. This legislation gives eligible parents up to 12 weeks of paid time off to be with their baby in neonatal care.
Eligibility for Neonatal Care Leave
This new entitlement applies when a newborn child requires neonatal care for at least seven days before reaching 28 days old. Statutory Neonatal Care Pay will be available to employees who meet the eligibility requirements, including earning a minimum of £123 per week and having at least 26 weeks of continuous service with their employer.
Pay and Benefits During Neonatal Leave
Parents will be compensated at the statutory rate, similar to other family-related leave entitlements, and the legislation will mirror the processes already in place for paternity, maternity, and adoption pay.
2025/26 Employment Legislation Changes – TBC
Unfair Dismissal
Now: Employees need to work for 2 years before they have the right not to be unfairly dismissed. There are no rules about probationary periods. Employers must give written reasons for dismissal to employees with 2 years’ service on request.
What the Bill says: Employees will have the right to claim Unfair Dismissal from day one. Accompanying regulations are expected to set out a ‘light touch procedure’ allowing fair dismissal during an “initial period” (probation).
The duration of this initial period is not specified in the Bill but will be determined through regulations. The government’s current preference is for a nine-month period.
Employers are expected to be able to fairly terminate during the probation where: (1) the termination date is no later than 3 months after the end of the probation, provided notice was served during that period, and (2) the reason for dismissal is capability, conduct, illegality or some other substantial reason relating to the employee.
The new unfair dismissal rules in the UK are expected to come into force in Autumn 2026 at the earliest. The government will consult on the reforms in 2025, and the changes may only apply to new employees when they come into force.
Statutory sick pay from day one of sickness
Currently, statutory sick pay is payable from day four of sickness, and employees need to be earning above £123 per week to qualify. The Bill scraps the waiting period so that SSP will become payable from day 1 of sickness and removes the lower earnings limit. These reforms are likely to happen relatively fast.
Redundancy Consultation
Redundancy thresholds will be based on the entire business rather than individual locations. This change will ensure that all employees affected by redundancies are included in the consultation process.
Parental and Paternity Leave
The Employment Rights Bill will remove the qualifying service requirement for paternity leave (currently 26 weeks) and unpaid parental leave (currently one year). Both will become day one rights.
Bereavement Leave
Current provisions on parental bereavement leave will be extended beyond parents to create a general right to bereavement leave. It will be confirmed in later regulations what conditions about relationship will apply to this leave. Leave will remain as two weeks following the death of a child and will be one week for any other bereavement.
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