HR Newsletter No 169 - Further Statutory Figures and Neonatal Care Regulations – April 2025

Statutory Figures

In addition to the previously published statutory pay increases for 2025 (refer to our Newsletter No 166), the annual increase in compensation limits have now been publicised. The limits apply to dismissals, including redundancies, occurring on or after 6th April 2025.

• £719.00 - the maximum amount of a week's pay for calculating statutory redundancy pay and the basic award; (up from £700.00);

• £21,570.00 - the maximum statutory redundancy payment or basic award, i.e. 30 weeks (up from £21,000);

• £118,223.00 - the maximum compensatory award which can be made for unfair dismissal (up from £115,115.00) or one-year’s gross pay whichever is the lower;

These increases mean that the maximum total unfair dismissal award is now £139,793.00 (up from £136,115.00); although uplifts can add a further 25%.

Employees may be entitled to receive guarantee payments for up to five days of lay off in any three-month period.  The maximum amount of such a Statutory Guarantee Payment will increase to £39.00 (up from £38.00) for any one day.

The new rates take effect where the 'appropriate date' for the cause of action (such as the date of termination in an unfair dismissal claim) falls on or after 6th April 2025.

New Neonatal Statutory Regulations from 6th April 2025

The Statutory Neonatal Care Pay (General) Regulations 2025 are proposed to come into force on 6th April 2025.  At the time of issuing this newsletter, we are still waiting on confirmation of Parliamentary approval, and the issue of the accompanying ACAS code.

A short summary of what is proposed is as follows, but the rules are surprising complex.

Eligibility

To qualify, neonatal care must start before the end of 28 days beginning with the day after the child’s birth. This includes palliative or end of life care, or medical care received in a hospital or another place, such as the parents’ home where:

1. the child was an inpatient in hospital and the care is received upon leaving hospital

2. the care is under the direction of a consultant

3. the care includes ongoing monitoring by, and visits to the child from, healthcare professionals arranged by the hospital.

Entitlement and Duration of Neonatal Leave

Employees are entitled to take one week of leave for each “qualifying period” the child receives neonatal care, which is any period of seven days during which the child receives care without interruption.

To be entitled to take the leave, employees must be taking it to care for the child, give the required notice and be either:

• the child’s parent, an intended parent of the child, or the partner of the child’s mother at the date of birth

• in cases of adoption be the child’s adopter, prospective adopter, or the partner of either at the date the child is placed

• an overseas adopter, or the partner of an overseas adopter at the date the child enters Great Britain.

A maximum of 12 weeks’ leave is available, and it must be taken before the end of 68 weeks beginning with the child’s date of birth. In cases of adoption, qualifying periods must be after the date the child is placed.

There are two tiers of neonatal care leave:

1. A “tier one period” is a period of leave beginning with the day the child starts receiving care, ending with the seventh day after they stop receiving care.

2. A “tier two period” means any period of leave which is not a tier one period.

Tier one leave cannot be taken before the day after the first qualifying period, but it can be taken in non-consecutive weeks. Any leave not taken as tier one leave can be taken in the tier two period.

Notice Requirements

Notice is required to take neonatal care leave and pay. Details include the child’s date of birth/date of placement of adoption, the date(s) the child started receiving care and the date it ended (if it has), and the dates and duration of the leave to be taken. The notice must also confirm that the employee meets the eligibility requirements.

Different notice periods are in place for tier one and tier two leave. For tier one leave, notice must be given before the employee is due to start work on the first day of absence, unless it is not reasonably practicable to do so.

For tier two leave, to take a single week of leave, notice must be given no later than 15 days before the first day of leave. For two or more consecutive weeks, notice must be given no later than 28 days before the first day of leave.

Neonatal Leave and Other Types of Statutory Leave

If the employee accrues neonatal care leave after already starting another period of statutory family leave, then the neonatal care leave can be taken after, providing it is within 68 weeks beginning on the child’s date of birth or placement. However, where the employee has already started neonatal care leave and begins another period of statutory leave, such as maternity or paternity leave, before neonatal care leave is due to end, then neonatal care leave will end immediately.

If the employee is still within the tier one period at the end of the other period of statutory leave, then any remaining neonatal care leave entitlement must be taken immediately. Where the employee is in the tier two period at the end of the other period of statutory leave, then the remaining entitlement must be taken consecutively with any other neonatal care leave.

Rights and Protections during Neonatal Care Leave

The protections during and after neonatal care leave are the same as for other statutory family related leave types. This includes:

• the right not to suffer a detriment or dismissal as a result of taking, or seeking to take, the leave; and

• the right to return to the same job after an isolated period of neonatal care leave, unless when added to other statutory leave (excluding parental) the total duration of leave is more than 26 weeks. In this case, they are entitled to return to another job that is suitable and appropriate on not less favourable terms.

Employees taking neonatal care leave, and during an additional protected period, are entitled to the same redundancy protection as for employees on maternity leave. The protected period begins once the employee has taken six consecutive weeks of neonatal care leave and ends 18 months after the child was born or placed for adoption.

Statutory Neonatal Leave Pay

This is available to those who had:

• 26 weeks’ continuous employment ending with the relevant week. The relevant week is the week immediately before neonatal care starts.

• Average earnings of not less than the lower earnings limit for the 8 weeks ending with the relevant week.

Up to 12 weeks’ Statutory Neonatal Care Pay is available. Where the employee does not meet the criteria to be entitled to neonatal care leave until after neonatal care has started, then they will be entitled to pay for any period of seven days of interrupted care after they become eligible.

We have written a suitable policy for our Client Handbooks, but until the Regulations are published, along with the ACAS Code of Practice, we will not roll out relevant wording in case of last-minute changes.  When it becomes law, if you have an employee asking to take up these new statutory rights, and you do not as yet have the new policy wording within your Handbook, please contact one of our Consultants who will advise you accordingly.