Family-Friendly Workplace Policies in 2025: What UK SMEs Must Know About Neonatal Leave and Menopause Support
Family-Friendly Workplace Policies in 2025: What UK SMEs Must Know About Neonatal Leave and Menopause Support
Neonatal leave is a new statutory entitlement (effective April 2025) allowing eligible UK employees to take up to 12 weeks of paid time off when their newborn baby requires hospital care within the first 28 days after birth. It is separate from maternity or paternity leave and aims to support parents during medical emergencies.
Introduction
In 2025, UK employment law continues its steady shift toward a more inclusive, family-conscious framework. For small and medium-sized enterprises (SMEs), keeping up with these changes isn’t just about compliance—it’s also about building resilient, loyal teams and staying competitive in a tight labour market.
Two of the most important developments this year are the introduction of statutory neonatal leave and growing guidance on menopause support in the workplace. In this blog, we outline what’s changed, why it matters, and how SMEs can take proactive steps to become truly family-friendly employers.
Understanding the New Statutory Leave Entitlements
Neonatal Leave UK 2025
Under the Neonatal Care (Leave and Pay) Act, coming into force in April 2025, parents of newborns requiring hospital care will have the right to additional paid leave.
Key Details:
Up to 12 weeks of leave (in addition to maternity/paternity entitlements)
Applies to babies needing at least 7 consecutive days of hospital care within the first 28 days
Statutory pay applies, subject to eligibility
Employees must give notice, supported by documentation (e.g. hospital letters)
This will affect SMEs with any parent-aged employees and will require prompt policy updates and HR system readiness.
Menopause Support at Work
Though not yet backed by specific legislation, menopause support is quickly becoming a legal and cultural expectation in the workplace. Recent EHRC guidance reminds employers that menopausal symptoms may qualify as a disability under the Equality Act 2010—meaning failure to make reasonable adjustments could give rise to claims.
What SMEs need to know:
Provide training to line managers
Create a written menopause workplace policy
Offer reasonable adjustments (flexible hours, desk fans, quiet spaces)
What SMEs Should Do Now
Small employers often assume that statutory compliance is only for “big firms.” In reality, SMEs are more agile—and often better positioned to support staff personally. Here’s how to lead on this issue:
Update Contracts & Employee Handbooks
Include new neonatal leave and menopause clauses
Clarify how leave requests should be submitted and managed
Train Managers on Conversations & Compliance
Run short sessions on neonatal entitlements and menopause accommodations
Equip line managers to respond lawfully and with empathy
Embed a Family-Friendly Framework
Broaden your support to include carer’s leave, miscarriage leave, and flexible hours
Ensure fairness in how requests are assessed
The Business Case for Family-Friendly Workplaces
Improve retention – especially for women and parents
Boost morale and productivity – employees feel understood and valued
Reduce risk – fewer grievances, tribunal claims, or reputational damage
Enhance ESG & DEI positioning – especially important for B2B supplier credentials
Tools and Resources for SMEs
ACAS guidance: Menopause at Work
Need help drafting compliant policies or updating contracts? Discalegal can provide:
Custom menopause and neonatal leave policies
Manager training & HR briefings
Ongoing compliance audits
FAQs
What is neonatal leave and who qualifies?
Neonatal leave allows parents whose baby requires hospital care to take up to 12 weeks of extra time off. It applies from April 2025 and is available to employed parents who meet service and earnings thresholds.
Is menopause covered under UK employment law?
While there’s no standalone menopause law, symptoms may qualify as a disability under the Equality Act 2010. Employers must make reasonable adjustments or risk legal action.
What should SMEs include in their family-friendly policies?
At minimum: neonatal leave entitlements, menopause guidance, carers’ leave, flexible working procedures, and internal escalation pathways.
How can small businesses support employee wellbeing?
Clear policies, manager training, and responsive HR systems can foster a culture of openness—especially around personal or medical challenges.
Conclusion
The UK employment law landscape is evolving—and SMEs have a real opportunity to lead. Proactive support for neonatal leave and menopause in the workplace isn't just a legal requirement; it’s a blueprint for smarter, more human-centric business.
