A New Era for Family-Friendly Rights: What Employers Need to Know

A New Era for Family-Friendly Rights: What Employers Need to Know

The UK is entering a transformative phase in employment law, with a strong focus on supporting working parents and carers. From Neonatal Care Leave and Pay to proposed reforms under the Employment Rights Bill, these changes reflect a growing recognition of the realities of modern family life—and they bring both opportunities and responsibilities for employers.

Neonatal Care Leave & Pay: A Landmark Change

Starting 6 April 2025, eligible employees will be entitled to up to 12 weeks of additional leave if their baby requires neonatal care. This is a day-one right for leave, though pay eligibility requires 26 weeks of service.

Key points:

• Applies to each parent individually—not shared like Shared Parental Leave.
• Leave is triggered if the baby receives neonatal care within 28 days of birth for at least 7 continuous days.
• Leave can be taken in blocks (Tier 1) or as a continuous period (Tier 2), depending on timing.
• Pay is aligned with other statutory family pay: £187.18/week or 90% of earnings.

This change is expected to benefit around 60,000 parents annually, offering vital support during one of the most stressful times in a family’s life.

Bereavement Leave: A Broader, More Inclusive Approach

Currently limited to parents who lose a child under 18, bereavement leave is set to expand:

• Unpaid leave will be extended to employees who lose a ‘loved one’ (e.g., spouse, parent, sibling).
• Day-one right for all eligible employees.
• Paid leave remains only for parents who lose a child.

The government has also accepted the principle of bereavement leave for pre-24-week pregnancy loss, covering miscarriage, ectopic pregnancy, and medical termination—though this is not yet in the draft Bill.

Paternity & Parental Leave: More Accessible

• Paternity leave becomes a day-one right, with added flexibility to take it even after Shared Parental Leave.
• Unpaid parental leave (up to 18 weeks per child) will also be available from day one of employment.
• A full review of parental leave is expected in the near future.

Stronger Protections for Parents

The Employment Rights Bill proposes:

• Extending redundancy protections to include dismissals for reasons beyond redundancy.

• Covering employees returning from maternity, adoption, shared parental, and neonatal care leave for up to six months post-return.
• Adding employees on neonatal care leave over six weeks to the priority group in redundancy situations.

What Employers Should Do Now

To prepare for these changes, employers should:

• Update policies and contracts to reflect new entitlements.
• Train HR teams and managers on the complexities of neonatal care leave and other updates.
• Plan for operational impact, including potential increases in leave requests and budget impacts.
• Respect employee privacy—especially around medical details and bereavement.
• Support wellbeing—recognize the emotional toll of neonatal care and bereavement.

These reforms mark a cultural shift toward more empathetic and flexible workplaces. While they may introduce complexity, they also offer a chance to build trust, loyalty, and resilience within your teams.