Family-related employment rights are continuously expanding and becoming increasingly more detailed. With the Government set to introduce even more changes over the next two years, I have summarised the key details of what’s new and what to expect.
Recent Changes Already in Force
Neonatal Care Leave & Pay
Eligible parents whose babies meet the qualifying conditions and require specialist neonatal treatment have a right to take up to twelve weeks of leave from day one of employment.
What does this look like in practice? Where an employee has a premature baby that spends several weeks in hospital, they can take neonatal care leave on top of their maternity, paternity, adoption or shared parental leave.
What about the pay? Eligible employees will receive statutory neonatal care pay which is calculated using the standard statutory formula like maternity/paternity pay (i.e., the lower of £187.18 per week or 90% of average weekly earnings). This is designed to give parents genuine breathing room during what is often an overwhelming and emotionally difficult period.
When does it need to be taken? This leave is flexible and can be taken in blocks or as one period (depending on the regulations and employer policy). In reality, most parents take it immediately following a neonatal admission, but the rules allow the leave to fit around individual family needs.
Statutory Carer’s Leave
Employees now have the right to one week’s unpaid carer’s leave per year to provide or arrange care for a dependant with long-term care need. This right is available from day one of employment.
What counts as a long-term care need? A dependant with a long-term care need is someone that may have:
- an illness or injury requiring care for more than 3 months; or
- a disability under the Equality Act; or
- care needs related to old age.
Employers are required to grant this type of leave and may only postpone (not refuse) in exceptional circumstances, i.e., where taking leave at the requested time would cause serious operational disruption.
Many employers understandably confuse carer’s leave with other similar types of leave. There are clear distinctions between these types of leave as follows:
- Carer’s leave: unpaid leave for planned or foreseeable responsibilities for someone with a long-term condition
- Time off for dependants: unpaid leave for short notice or emergencies regarding dependants
- Compassionate leave: discretionary leave to deal with traumatic events or bereavement. This can be paid or unpaid depending on the company’s policy.
Changes Under The Employment Rights Act
The Employment Rights Act (“the Act”) builds on these developments and signals a further strengthening of family-related rights. In December 2025, the Government passed the Act which expanded statutory protections as follows:
1. Enhanced protection against dismissal for pregnant against dismissal for pregnant employees / new parents
The Act proposes to strengthen protection against dismissal for pregnant employees, new parents and those taking statutory family-related leave, including neonatal care leave and pregnancy-loss bereavement leave.
In relation to pregnant employees and new mothers, the period of protected employment could be extended. The public consultation closed on 15 January 2026 with responses currently being reviewed to decide on the specific rules. It is still being decided whether the protected period spans 18 months from the birth of the child or 6 months from the return to work (i.e., the end of maternity leave).
The aim is to ensure that returning to work does not immediately place employees at risk of redundancy during a particularly vulnerable period.
2. Bereavement leave for pregnancy loss
One of the most prominent changes extends statutory bereavement leave to cover pregnancy loss, including miscarriages before 24 weeks. This new right would give employees formal time off to grieve, rather than relying on sympathetic managers or annual leave. The duration (beyond the one week minimum), notice requirements and whether the leave is paid are currently being finalised following the close of public consultation. This change is expected to take effect in 2027.
3. Paid carer’s leave
The government has committed to reviewing the proposal to convert the above current one-week unpaid entitlement into paid leave at the employee’s normal pay rate.
This may lead to increased payroll costs and a potential increase in employee’s taking carer’s leave. It is essential that employers have clearer systems for managing and recording care-related absences.
There is currently no confirmed implementation date for paid carer’s leave as it was not included as a mandatory requirement in the Act. A formal consultation is expected in 2026, with no implementation expected before 2027.
4. Day one rights for paternity and parental leave
The Act expands paternity leave and unpaid parental leave so that they become available from the first day of employment, removing the current service-based eligibility thresholds. These measures will take effect on 06 April 2026.
In practice, this means a new starter may qualify almost immediately which is something employers will need to factor into workforce planning.
5. Flexible working
Where an employer refuses a flexible working request, they must give a written and reasonable explanation for the refusal. The statutory 8 business grounds for refusing a request remain the same, however the requirement for justifying a rejection is a new development under the Act. This change is expected to take effect in 2027.
Therefore, the change reflects that flexible working will become the default from day one and a normal working arrangement unless there is a clear business justified reason to not allow it.
Implications For Employers
These relatively new changes under the Act represent a much more complex and protective family friendly framework.
Employers should ensure:
- their policies accurately reflect the recent changes of the new neonatal care regime and carer’s leave entitlement;
- payroll systems are adjusted to accommodate the revised statutory rates and eligibility rules for neonatal pay or carer’s leave when this change comes into effect;
- managers have appropriate training and clear guidance on how to respond to leave requests, particularly in sensitive circumstances such as neonatal care or pregnancy loss; and
- absence management procedures and record keeping are place and regularly updated.
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