Proposed changes to employment legislation that would create new rights to neonatal care leave and carer’s leave are due to be introduced to the House of Keys next week.

The Department for Enterprise says that the measures for part of the ongoing work to modernise and strengthen employment law on the island.

The Employment (Amendment) Bill 2025 is the second of two pieces of legislation the Department committed to bringing forward under the legislative programme published in the Island Plan.

If approved, it would allow the Department to introduce secondary legislation setting out the detail of the new leave entitlements.

One of the key proposals concerns neonatal care leave.

Under the plans, parents whose child receives care in the Neonatal Intensive Care Unit would be eligible to claim up to 12 weeks of additional parental leave. The length of leave available would be linked to the duration of the neonatal care. The Department says the proposal is intended to provide support to working families facing difficult and often unexpected circumstances at the earliest stages of their child’s life.

The Bill would also establish a new statutory provision for carer’s leave. This would take a two-tier approach. Eligible employees who are unpaid carers would be entitled to take one week of leave from work each year. A separate, longer-term leave option would be available for carers seeking to take extended time away from employment in order to manage caring responsibilities. The aim is to give workers with significant caring duties the ability to remain in work in the longer term while balancing the demands placed on them at home.

There will be no statutory requirement for employers to pay staff during either type of leave. However, the Department is working with Treasury to explore options that would enable eligible individuals to access financial assistance during their period of absence. Details of any potential assistance have not yet been set out and would follow in future secondary legislation.

Tim Johnston MHK, Minister for Enterprise, said the proposals reflected the Department’s commitment to supporting families and carers who may be navigating challenging circumstances while also trying to maintain their employment. He said the new provisions aimed to create practical frameworks for employers and provide wider socio-economic benefits by helping to keep people in work.

Mr Johnston said: ‘Bringing forward this new legislation is a step further in the Department’s commitment to supporting working families during difficult times and those who have care responsibilities whilst balancing their employment.

‘These provisions assist in enabling people to stay in work in the long term and provide practical frameworks for employers, delivering wider socio-economic benefits for the Island.

‘Throughout this administration, we have worked hard to balance the needs of a changing workforce with those of employers, while keeping pace with developments in neighbouring jurisdictions.

‘We are committed to working with stakeholders in the future developments of the details of these new provisions and look forward to bringing these through the Tynwald branches.’

The Employment (Amendment) Bill 2025 is scheduled to have its first reading in the House of Keys on Tuesday 2 December. Further information is available at gov.im/employmentrights.