In a previous blog post we outlined the bumper pack of worker rights legislation making its way through Parliament. On 24 May 2023 many of these proposals received “royal assent” (the final stage to becoming binding legislation) – although these measures won’t immediately come into force.

What legislation has been passed?

Neonatal Care (Leave and Pay) Act 2023 – provides up to 12 weeks paid neonatal care leave for employees with caring responsibilities for babies who spend at least one week in neonatal care (in addition to other leave entitlement e.g. maternity and paternity leave). Regulations will set out the duration and conditions of the leave, however, leave must be at least one week and be taken within a minimum of 68 weeks of the child’s birth. The right to neonatal leave is a day one right; the right to statutory neonatal pay is subject to the employee having 26 weeks’ continuous service.  

Protection from Redundancy (Pregnancy and Family Leave) Act 2023 –  under existing law, employees at risk of redundancy who are on maternity, adoption or shared parental leave have special protection in that employers have an obligation to offer them suitable alternative employment (where a vacancy exists) in priority to other employees at risk of redundancy. Under this new act, these existing redundancy protections will be extended to cover a period of time after a new parent returns to work. The act does not specifically set out details, however, it enables the Secretary of State to make regulations in which further details will be provided. We understand that the regulations will extend the existing redundancy protection from when a woman informs her employer of her pregnancy and for six months after returning to work. Regulations are also expected to provide the same enhanced protections to those returning from adoption leave and shared parental leave.

Carer’s Leave Act 2023 – a day-one statutory entitlement to one week of flexible unpaid leave per 12 month period for employees who care for a dependent with a long-term care need. A long-term care need is any illness or injury likely to require at least three months of care, any disability under the Equality Act 2010, or any reason connected with old age. Key provisions in relation to this leave and how it will work in practice will be specified in regulations.

The Employment (Allocation of Tips) Act 2023 – makes it unlawful for employers to withhold tips and service charges from their staff.  See our blog post for more information about this act.

When is this legislation coming into force?

Many of the above acts are dependent on additional statutory instruments being implemented for the act to take effect, for example:

• the Neonatal Care Act is dependent on regulations, namely seven statutory instruments to enact the new entitlements to neonatal care leave and pay. The Department for Business and Trade has anticipated that these will take approximately 18 months and expects implementation in April 2025.
  
  
• the Protection from Redundancy Act will also require regulations to implement the new redundancy protections. Whilst the act will come into force two months from being passed (24 May 2023), regulations will set out the details of the protection (including the protected period), are expected to come “in due course” as parliamentary time allows.
  
  
• the Carer’s Leave Act is due to come into force in April 2024. Further regulations in respect of this act will set out more detail, for example, how and when the leave is taken and any other conditions e.g. notice requirements, consequences for non-compliance.

Next steps?

Given these timescales, there are not necessarily any immediate actions for employers to take. Employers will need to keep a watching brief on developments from the government for the additional statutory instruments that bring these acts into effect and how they will work in practice. Subject to these developments, employers will need to consider updating (or producing) written policies, guidelines and procedures in respect of new leave entitlements and redundancy procedures. Employers will need to make those who are performing redundancy exercises aware of the increased scope of redundancy protections for pregnant mothers and those returning from maternity, adoption and shared parental leave. Employers can also consider whether to offer any enhancements on the statutory minimum e.g. paid carer’s leave or enhanced statutory neonatal pay.

To stay up to date on any developments, please subscribe to our blog. In the meantime, please reach out to your usual contact in our team if you would like to discuss any of these proposals further.