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It is set to be a busy time in employment law, with the most significant package of reforms in a generation expected over the next two years. We highlight below two key developments: the introduction of neonatal leave from April 2025, and a wider roadmap of changes under the Employment Rights Bill (ERB) anticipated from 2026 onwards.
Neonatal leave from 6 April 2025
From 6 April 2025, eligible employees will have a new statutory right to take up to 12 weeks’ neonatal leave without having to use existing leave.
Key points for employers:
- Entitlement arises where a child is admitted to hospital within 28 days of birth and remains in care for at least seven days.
- Leave is a day-one right – there is no qualifying period.
- Leave is in addition to other family leave (e.g. maternity, paternity or adoption leave).
- Statutory Neonatal Pay (SNP) is paid at the same rate as statutory paternity or shared parental pay (but only payable where the employee has 26 weeks’ service and meets earnings thresholds).
- Where multiple births occur, a maximum of 12 weeks applies across all children.
Employees taking neonatal leave will benefit from similar protections to those on maternity leave, including:
- Right to return to the same (or a suitable alternative) role.
- Protection from detriment and automatic unfair dismissal linked to their leave.
- In certain redundancy situations, priority access to suitable alternative roles.
Rural businesses should prepare for the introduction of neonatal leave and consider their internal family leave policies, provide suitable training for managers and ensure that payroll is ready to administer SNP where an employee is eligible.
Employment Rights Bill: roadmap of wider changes
Looking ahead, a raft of reforms under the ERB are expected to come into force from autumn 2026 onwards. These include several changes of note for agricultural employers:
1. Unfair dismissal rights from day one. The qualifying period to bring an ordinary unfair dismissal claim will be removed, although there will likely be a ‘light-touch’ dismissal procedure required during the first 9 months.
Implications: Managers will need to be cautious when dismissing new starters. Early documentation, robust probation processes and consistent reviews will be key.
2. Fire-and-rehire restrictions. Employers will be restricted from dismissing and re-engaging employees to force through contractual changes unless facing genuine financial distress.
Implications: This may limit flexibility for employers needing to respond quickly to seasonal or market changes. Contract reviews and early engagement with staff will be essential.
3. Sexual harassment reforms. Employers will be required to take ‘all reasonable steps’ to prevent workplace harassment, including by third parties.
Implications: Policy updates, staff training and a clear complaints process will be essential. This is especially relevant where employees interact with clients or the public (e.g. at farm shops or events).
4. Changes to collective redundancy thresholds. Redundancy thresholds will apply across a business, not per site.
Implications: For larger, multi-site operations, this may increase the chance of triggering collective consultation obligations.
5. Further changes to be aware of include:
- Flexible working requests: employers must give a reasoned refusal based on statutory grounds.
- Time limits for bringing tribunal claims set to extend from three to six months.
- Introduction of rights for zero-hours workers (including guaranteed hours in certain cases).
- Reforms to family leave, including enhanced protection for returning parents and earlier rights to paternity leave.
Although the changes are not coming into force immediately, early preparation will ensure that your organisation is ready for the more employee-focused legal framework on the horizon.
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Employment law insights webinar: navigating change and compliance
We are excited to invite you to our upcoming webinar, where we will delve into critical updates and changes in employment law that are essential...