Global Complaince – United Kingdom
United Kingdom: Upcoming Labour Law Amendments
The UK government has introduced significant amendments to employment law, set to take effect in 2025. The amendments primarily impact statutory leave entitlements, pay provisions, and sick pay rates, reflecting a broader commitment to work-life balance and employee welfare.
The key amendments are as follows:
Neonatal Care Leave and Miscellaneous Amendments Regulations
Effective 6 April 2025, the Neonatal Care Leave and Miscellaneous Amendments Regulations (“The Regulation”) grants statutory leave and pay entitlements to eligible employees whose babies require neonatal care. This legislation provides additional support for parents during the critical period following birth.
Duration of Neonatal Care Leave- Employees will be entitled to one week of leave for each full week (7 days) their baby receives neonatal care, up to a maximum of 12 weeks. The leave must be taken within 68 weeks of the child’s birth.
Types of Neonatal Care Leave
- Tier 1: This period starts from the beginning of the child’s neonatal care and lasts until seven days after the neonatal care ends. During this period, an employee can take the neonatal care leave in non-consecutive blocks of one week each.
- Tier 2: This period begins after the Tier 1 period ends and continues up to 68 weeks after the child’s birth. Any remaining neonatal care leave must be taken in a continuous block during this period.
Eligibility for Neonatal Care Leave- Neonatal Care Leave can be taken from the first day of employment which is a day-one right available to employees who meet the following criteria:
- The baby must be born on or after 6 April 2025.
- The employee must be a parent, intended parent (in surrogacy cases), or the partner of the baby’s mother and must have or expect to have responsibility for raising the child.
- The newborn must be admitted to neonatal care within 28 days of birth and must remain in care for at least 7 continuous days.
- Leave must be taken to care for the baby.
- Leave must be taken in blocks of at least one week.
The Regulation defines a partner as an individual who lives with the baby’s mother or adopter in an enduring family relationship, excluding close relatives.
Eligibility for Neonatal Care Pay (NCP) -to qualify for Neonatal Care Pay, an employee must:
- Have been continuously employed for at least 26 weeks by the end of the 15th week before the baby’s due date.
- Have average gross weekly earnings above the Lower Earnings Limit for National Insurance purposes (£125 per week for 2024–25).
Notice Requirements for Neonatal Care Leave
Tier 1 Leave: Employees are required to inform their employer within 28 days from the start of the first statutory pay week covered by the notice.
Tier 2 Leave: For a single week of leave – 15 days’ notice before the first day of leave.
- For two or more consecutive weeks – 28 days’ notice before the first day of leave.
- Employers and employees may agree to waive notice requirements.
Statutory Sick Pay (SSP) Increases
Currently, employees are entitled to Statutory Sick Pay (SSP) for up to 28 weeks at a weekly rate of £116.75.
Effective April 1, 2025, the weekly SSP rate will increase to £118.75.
Statutory Family Pay Increases
Currently, the statutory weekly rate for maternity, paternity, adoption, and shared parental pay is £184.03 per week, or 90% of average weekly earnings (whichever is lower).
Effective April 1, 2025, these rates will increase to £187.18 per week or 90% of average weekly earnings (whichever is lower).
Proposed Amendments – Paternity Leave (Bereavement) Act 2024
The Paternity Leave (Bereavement) Act 2024 was passed in May 2024, introducing new rights for bereaved partners when a mother or adoptive parent dies. However, the Act has not yet been effective and expected to come into force by 2025.
The Act entitles bereaved partners such as fathers, civil partners, or the spouse/partner of an adoptive parent can take paternity leave if the mother or primary adopter dies, allowing them time to care for the child.
The Paternity Leave (Bereavement) Act 2024 grants bereaved partners the right to take leave without meeting the 26-week minimum service requirement, ensuring immediate eligibility regardless of their length of employment. While the Act does not specify the exact duration, it is expected that eligible individuals could receive up to 52 weeks of leave, a substantial extension from the current two-week entitlement. The Act also extends to adoptive parents, allowing the surviving partner to take leave if the child’s primary adopter passes away.
Take away- Employers must take proactive steps to comply with the amendment and must review and revise their policies at the earliest in order to align with the upcoming changes to the existing statutory requirements.
