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by Munro Research

Neonatal Care (Leave and Pay) Act 2023


Official Summary

A Bill to make provision about leave and pay for employees with responsibility for children receiving neonatal care.

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Overview

This bill introduces new statutory rights to neonatal care leave and pay for employees caring for a child receiving neonatal care. This aims to support parents facing the challenges of neonatal care by providing them with paid time off work.

Description

Neonatal Care Leave

The bill creates a statutory entitlement to neonatal care leave for employees with a parental or personal relationship with a child receiving neonatal care (medical or palliative care starting within 28 days of birth and lasting at least seven consecutive days). This leave must be taken within 68 weeks of the child's birth. At least one week of leave is guaranteed.

Neonatal Care Pay

A statutory entitlement to neonatal care pay is also established. Eligibility requires at least 26 weeks of continuous employment before the relevant week (defined differently depending on other leave entitlements, otherwise the week before care starts). The pay rate and duration are to be determined by regulations, with a minimum of 12 weeks' pay guaranteed.

Further Amendments

The bill makes numerous consequential amendments to existing legislation, including the Employment Rights Act 1996, the Social Security Contributions and Benefits Act 1992, and several other acts, ensuring consistency and integration with existing leave and pay schemes. It addresses issues around redundancy, dismissal, and the treatment of neonatal care leave in relation to other forms of leave, such as maternity, paternity, and adoption leave. It also aims to ensure fair treatment within employment-related benefit schemes.

Government Spending

The bill will lead to increased government spending as it introduces a new entitlement to paid leave. The exact cost is dependent upon the level of pay and duration set by future regulations but is expected to be significant. No precise figures are available in the bill text itself.

Groups Affected

  • Parents of infants receiving neonatal care: This group will directly benefit from the paid leave and pay, enabling them to focus on their child's care.
  • Employers: Employers will have new obligations to provide leave and pay. The cost of this will vary depending on the number of employees utilizing the scheme.
  • Government: The government will incur additional financial costs associated with the neonatal care pay scheme.
  • Administrators of employment-related benefit schemes: These bodies will need to make necessary amendments to their schemes to ensure compliance with the bill's requirements.
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