Understanding Neonatal Care Leave

Speaker 1 0:41

Hi and welcome back to Buzzing About HR, the podcast that makes sense of all things HR without putting you to sleep halfway through. I'm Kate Underwood and today we're talking about something that's going to go live next week. Yes, next week it's the launch of the neonatal care leave and pay, and if you haven't looked at your policies or systems yet, this is your five day warning. But don't panic. I'm going to walk you through what the new law means, who it applies to and what you should have already done. No judgment on what you can still do to get this sorted this week. And, of course, I'll throw in a few tips and a bit of real world perspective, because, let's be honest, hr isn't just about ticking boxes. It's about supporting real people. So what's the neonatal care leave all about? From next week, eligible employees will be entitled to up to 12 weeks of additional leave if their baby is admitted to hospital within the first 28 days of life and stays in for at least seven consecutive days. This leave is on top of maternity, paternity, adoption and shared parental leave. It's designed to give parents a bit more breathing space when their baby needs specialist care. I'd like to give a shout out to our Charity of the Year. This topic hits home for us at KUHR because we're supporting the New Life Special Care Babies as our Charity of the Year. They help neonatal units across the UK and support families going through incredibly tough starts to parenthood, and I'm really excited to say that Trevor, the founder, will be joining us soon to talk about the human side of neonatal care and why this leave is more than just legislation.

Eligibility and Pay Details

Speaker 1 2:36

So keep an eye out for this episode. It's not one to miss. So let's just go back. Who would be eligible? The rules are straightforward the employee must be classed as an employee, not a worker or a contractor. Have 28. So who's eligible? So who's eligible? The rules are straightforward the employee must be classed as an employee, not a worker or contractor, have 26 weeks continuous service by the 15th week before the baby is due and be earning at least the lower earnings limit. Both parents may qualify, including same-sex and adoptive parents, as long as they meet the criteria and are responsible for the baby.

Speaker 1 3:37

So what about the pay? Statutory neonatal pay kicks in if they meet the conditions. This means they're paid weekly for up to 12 weeks. It would be at either the statutory neonatal leave pay or 90% of their average weekly earnings and it is reclaimable from HMRC, just like statutory maternity or paternity pay. To make life easier, we're posting a full list of all updated statutory rates from April 2025, including the neonatal pay, on our website this week. So if you want a clear reference, make sure you go and take a look. Can you go above statutory pay? Yes, you can. Just like with maternity or paternity leave, you can offer enhanced pay if it fits your values or budget. If you want to pay full pay for all or part of the leave, go for it. Just make sure your policy is clear, says exactly who gets what and is applied consistently. You can still claim the statutory bit back from the HMRC and just top up the difference.

Your HR To-Do Checklist

Speaker 1 4:53

If you're trying to position your business as family friendly or retain experienced staff, this one is one of those small things that can make a big impact. And one thing don't forget to check your insurances. This is both employees and businesses. This one is so easy to miss. If your business has income protection or a group insurance policy, check if neonatal care is covered. You might find you can offer the employee full pay, reclaim the statutory portion from the HMRC and then claim the rest through your insurer. It's well worth checking the small print. You might be in a better position than you thought.

Speaker 1 5:36

What should you be doing now, and yes, I mean this week? Here's what needs to be done on your HR to-do list. Firstly, update your policy. Write or amend your family leave policy to include neonatal leave and if you'd rather not write it yourself, get in touch. We've got a policy template ready to go and can tailor it to your business. Secondly, speak to payroll. Make sure they're ready to handle the new statutory payment and process claims through the HMRC. Thirdly, train your managers. Give them a heads up on what neonatal leave is, what the process is and how to handle sensitive conversations around it. Four, review insurance. Check if your business insurance covers this kind of leave. You could offer full pay and get reimbursed.

Addressing Common Questions

Speaker 1 6:32

Plan for cover is our fifth action point. This leave might be needed at short notice. Have a backup or contingency in place if someone needs to step away quickly. This should really cover in your checklist for maternity and parental leave. Communicate with your team. Even a quick mention in a team meeting or staff email will help. If you use Breathe, you can just put a little announcement up. People need to know that this support is available and make sure, finally, you bookmark our website. We'll have all the statutory rates for April 2025 listed clearly at kateandrewidhrcouk Handy when you're updating documents or explaining these entitlements.

Speaker 1 7:24

So there are some frequently asked questions that we've had, some from some of our clients, so I thought it'd be great just to let you know what those questions are and what our advice is. So, firstly, what if the baby is in hospital but comes home then goes back in? The law requires seven consecutive days of care within the baby's first 28 days. If the stays are broken up, eligibility might be affected, but it does depend on the timing. However, if you've got a payroll system that's got all the up-to-date information in it, if you put the dates in that somebody is taking the leave, it will automatically determine whether they are eligible. It will automatically determine whether they are eligible.

Speaker 1 8:07

This one's come through a lot. Do I have to approve this leave? The simple answer is no. This is a statutory right. If the criteria are met, you must grant the leave. What if we don't have a written policy yet? If you are a client of KUHR, then you will have already had that in our knowledge bank or we would have sent it to you. It's time you need to get one sorted. If you don't have time or headspace to draft one, we've got you covered. Just get in touch and we can tailor a policy for your business.

Speaker 1 8:43

Can both parents take it? This has been a common question as well, and the answer is yes. If both meet the eligibility criteria, they can each take up to 12 weeks. Can the leave be split? So I know this is quite a common question. When we talk about paternity leave, yes, it doesn't have to be taken in one go. It can be taken in blocks over the first 68 weeks after birth.

Final Thoughts and Wrap-Up

Speaker 1 9:10

Greater for flexibility, trickier for tracking. So make sure your record keeping is up to scratch. And is this only for babies born after the law goes live? Yes, the law applies to babies who require hospital care starting on or after the official start date next week. Final thoughts so neonatal care leave and pay a new right kicking in next week and one that could make a huge difference to employees going through a really tough time. If you're still scrambling to get everything in place, don't worry, you've still got time. Just Get your policy written, check your insurance, speak to your payroll and let your team know and if you need a hand, whether it's a quick HR health check, policy writing or manager training, just get in touch. And don't forget we'll be back very soon with Trevor from New Life Special Care Babies to share more about the emotional reality behind this legislation. Thanks for listening to Buzzing About HR and remember compliance is good, but compassion is even better.