Upcoming Legislation Changes to Neonatal Care Leave, Reforms to Zero-Hours Contracts, Redundancy, and Sick Pay
Stephanie Pote · Posted on: March 17th 2025 · read
Neonatal Care Leave (NCL) and Statutory Neonatal Care Pay (SNCP)
From the 6th of April 2025 there will be a new day one right for families with babies in neonatal care. This right will apply to parents of babies who are admitted to neonatal care up to 28 days old and who have a continuous stay in hospital of 7 full days or longer. These measures will allow eligible parents to take up to 12 weeks leave (and, if eligible, pay) on top of any other leave they may be entitled to, including maternity and paternity leave. Key elements of the legislation include;
- Eligible employees, including biological parents, adoptive parents and intended parents via surrogacy, who must take the leave to care for the child.
- Up to twelve weeks’ leave.
- To be taken within 16 weeks of the birth.
- Notification requirements: to be finalised but likely to be minimal notice initially then more formal notification in order to be paid.
- Leave must be taken before the child reaches 68 weeks old, offering flexibility for parents depending on their circumstances.
- Payment at statutory rate (subject to eligibility including 26 weeks’ service).
Employers should consider including information on Neonatal care leave within their family leave policies, ensuring they reflect the new NCL and SNCP entitlements.
If you require an update to your existing family leave policies or a new Neonatal Care Leave policy HR Solutions can work with you as required.
Government Amendments and Consultation Responses on the Employment Rights Bill
The Employment Rights Bill (the Bill) has been gathering momentum in recent months. On 4 March, the government introduced numerous amendments to the Bill and published responses to four consultations conducted last autumn.
These consultations sought feedback on key employment issues, including zero-hours contracts for agency workers, collective redundancy and fire-and-rehire practices, modernising industrial relations, and strengthening statutory sick pay.
This update focuses on the consultation responses and their impact on the Bill.
Agency Workers and Zero-Hours Contracts
The government has confirmed that the new legislation on zero-hours contracts will apply to agency workers, ensuring that agency work does not become a loophole in ending exploitative contracts. Under the Bill, workers on zero-hours contracts will have the right to:
- Be offered guaranteed hours.
- Receive reasonable notice of shifts and changes.
- Be compensated for cancelled, shortened, or rescheduled shifts.
Acknowledging differing views in the consultation responses, the government stressed the need for clear regulations for hirers, agencies, and workers. Secondary legislation will clarify responsibilities, and further consultation on these regulations is planned.
Key amendments to the Bill include:
- The responsibility for offering guaranteed hours to qualifying agency workers will rest with the end hirer, though regulations may allow agencies to take on this role in certain cases.
- Both the agency and the hirer will be responsible for providing reasonable notice of shifts.
- Employment agencies will be responsible for paying compensation for last-minute shift cancellations or changes.
- Agencies may recover these costs from hirers under pre-existing arrangements.
- Contractual agreements will determine whether agencies can reclaim costs from hirers.
Following consultation, the government has decided not to change the current system of transfer fees or extended hirer periods, nor will it prescribe how agencies should be informed about available shifts or last-minute changes.
Collective Redundancy and Protective Awards
The government will amend the Bill to increase the cap on protective awards in collective redundancy cases from 90 days to 180 days. This means that if employee representatives challenge the adequacy of consultations during mass redundancies, restructures, or contract changes, tribunals may now award up to 180 days’ pay per affected employee. This significant penalty is designed to encourage compliance.
Additionally, from 20 January 2025, tribunals may apply a 25% uplift to protective awards if an employer unreasonably fails to follow the Code of Practice on Dismissal and Re-engagement. This could significantly increase financial liabilities for non-compliant employers.
While the consultation revealed that most employers do conduct collective redundancies properly, many sought guidance on fulfilling their obligations. The government has committed to providing further best practice guidance.
Proposals to introduce interim relief for protective award claims or unfair dismissal claims related to fire-and-rehire will not be pursued. However, the government plans to gather further input this year on strengthening collective redundancy regulations and will review updates to the Code of Practice on Dismissal and Re-engagement in 2025.
Trade Unions and Industrial Action
Following consultation, the government will introduce amendments to the Bill to:
- Simplify the information required on industrial action ballots and employer notifications.
- Require trade unions to provide 10 days’ notice before industrial action.
- Introduce e-balloting to increase participation in statutory ballots.
- Extend the validity of industrial action ballots from 6 months to 12 months.
- Streamline the trade union recognition process and enhance protections against unfair employer practices.
- Ensure that once the Central Arbitration Committee (CAC) receives a union’s application, employer-reported workforce numbers cannot be inflated to undermine recognition efforts.
- Expand trade union access to workplaces to include digital engagement.
- Establish a fast-track mechanism for securing access agreements, with penalties for non-compliance.
Strengthening Statutory Sick Pay (SSP)
Statutory Sick Pay (SSP) will be available from the first day of sickness absence for all employees. The government sought feedback on how SSP should be calculated for lower earners, particularly those below the Lower Earnings Limit (currently £123 per week, rising to £125 in April). It has now confirmed that SSP will be set at 80% of normal weekly earnings or the standard SSP rate, whichever is lower.
Next Steps and Further Reforms
On 31 October 2024, the House of Commons Business and Trade Committee (BTC) launched an inquiry into the Bill, gathering written and oral evidence. On 3 March, the BTC published its report, making several recommendations, and the government has until 3 May to respond.
Key recommendations include:
- Clarifying zero-hours contract provisions.
- Developing a long-term industrial relations strategy.
- Ensuring the new Fair Work Agency is well-resourced and empowered to enforce employment rights effectively.
- Conducting an immediate review of employment status laws to align potential reforms with the Bill.
- Strengthening the Modern Slavery Act by making modern slavery statements mandatory, introducing penalties, and publicly identifying non-compliant companies.
Looking Ahead
The Bill is still evolving, with further amendments expected as it moves through Parliament. Much of the detail will be finalized through additional consultations and regulations.
One certainty is that as these reforms take shape, employers will gain a clearer picture of their obligations, making it easier to plan ahead. We will continue to keep you informed about the latest developments and their implications.
Our expert's final thoughts
"HR Solutions can advise you on the whole range of employee relations issues within the framework of the current legislation. We can also guide you through new and amended legislation as it is finalised, ready for when it comes into force."
