Parents will be entitled to bereavement leave after miscarriage

A new amendment to the Employment Rights Bill will introduce new legal protections for employees who suffer a miscarriage before 24 weeks.

This amendment is designed to close a longstanding gap in employment law and give much-needed clarity on time off for miscarriage. At present, employees often have to resort to annual leave or sick leave.

Currently, statutory bereavement leave only applies when a child dies under the age of eighteen or where there is a stillbirth after 24 weeks of pregnancy.

Bereavement leave after miscarriage

While Parental Bereavement Leave has been available since 2020 for those suffering a stillbirth (after 24 weeks) or the loss of a child, there is currently no legal entitlement for miscarriage before 24 weeks.

Many people have been campaigning for this change.

Under the new law, parents will be entitled to statutory bereavement leave after a miscarriage at any stage of pregnancy.

This will be a day one right, meaning there is no qualifying period.

The new legislation will provide much-needed certainty and support for thousands of parents, as between 10 per cent and 20 per cent of pregnancies are lost within the first 12 weeks.

Dr Clea Harmer, Chief Executive of Sands, said: “Families tell us how important it is to have the time they need after pregnancy and baby loss, and statutory leave for all employees, including partners, will help to provide this.”

What employers should do now

Because there has been no statutory entitlement to bereavement leave before 24 weeks, many employers have offered sick leave, annual leave or discretionary compassionate leave instead.

The new law will give clarity and certainty by making leave a statutory right.

The Department for Business has not yet confirmed when the new law will take effect, how long the statutory leave will be, and whether it will be paid. It is anticipated that these details will follow after a period of consultation.

Other day one employment rights are expected to start from April 2026, and currently miscarriage bereavement leave is expected to follow in 2027.

While this may seem some way off, there are several steps you should take now to prepare:

• Review your bereavement and pregnancy loss policies. Do they cover miscarriage? If not, what needs to change?
• Ensure line managers are trained to respond sensitively to pregnancy loss, including recognising that an employee may not wish to disclose the details of their situation.
• Check that your existing sickness, compassionate and parental leave policies do not conflict with what the new law will require.
• Plan how you will communicate these changes to your staff when they come into effect.

The new legislation will set the minimum standard, but the extra support you put in place can make a huge difference to employee wellbeing, productivity, and loyalty.

Even before the new rules come into force, be flexible with requests for time off when an employee suffers a miscarriage.

You could also consider offering paid miscarriage leave as a matter of best practice. This can align with your existing bereavement leave policies, and you do not have to wait for new legislation to do this.

Build a supportive workplace with Palmers

An estimated one in five women – approximately 250,000 – experience miscarriage in the UK every year.

The emotional impact can be significant, not just for the person physically experiencing the loss but also for their partner.

The introduction of statutory bereavement leave represents a huge step forward for parental rights, health and wellbeing in the workplace.

Our specialist employment law team can help you prepare company policies that enable you to build a supportive and understanding workplace, whilst ensuring that your rights and resources are protected.

If you would like help reviewing your policies in preparation for miscarriage bereavement leave, please get in touch with our employment law solicitors today. 

Commercial banks and other lenders risk their capital when they provide loans to businesses, so it is not uncommon for them to seek to protect their investment with a legally binding guarantee.

For many start-up businesses, a personal guarantee provided by a business owner, partner or director may be the only way to secure funding, and it can also provide access to higher loan amounts.

However, taking out a personal guarantee is not a decision to taken lightly, as you will be personally liable for the business’s debts if it fails.

What is a personal guarantee?

A personal guarantee is an assurance from a business owner, partner or other executive that they will become personally responsible for a business loan should the business default on the repayments.

Personal guarantees are particularly common in small business lending, where the business itself may not have the assets or track record to secure a loan independently.

The main purpose of a personal guarantee is to protect a lender’s position by providing them with security should the company be unable to meet its bills.

A personal guarantee can also influence the terms of the loan, such as more favourable interest rates or repayment schedules. It reflects a vote of confidence in your reliability and the viability of your business venture.

When a business has multiple owners, the guarantee is usually given “jointly and severally,” meaning a lender can choose who to pursue for the debt.

A guarantor who pays has a right of contribution from the others, but if the other parties were to disappear or be unable to pay, one individual could find themselves personally liable for the entire debt.

In practice, it is usual for a personal guarantee to be limited, which allows the lender to recover only a certain percentage of the loan from a given individual. However, the interest and expenses will be payable in additional to the amount secured through the guarantee.

An unlimited guarantee means the lender can recover the entire loan amount, plus interest and legal fees, by whatever means possible, if the borrowing business defaults on its loan, or even other loans that may be obtained by the same borrower.

The lender could take money from a director or guarantor’s personal assets, such as savings or properties – a substantial risk for the borrower.

In many cases, the use of a personal guarantee allows businesses to start up or expand successfully, and the guarantee is never called upon.

However, the potential pitfalls should still be considered before you agree to a personal guarantee.

When do I have to repay the loan?

You become liable under a personal guarantee when your business defaults on or becomes unable to repay a business loan and the lender makes demand.

If the borrower fails to make scheduled repayments or breaches other terms of the loan agreement, it’s likely that the lender will seek to enforce the guarantees and you’ll then become liable to pay the debt.

In cases where the primary borrower is a business that becomes insolvent and is unable to pay its debts, you’ll need to step in and meet your obligations under the loan agreement.

Additionally, certain loan agreements might specify situations under which your liability is triggered, beyond simply defaulting or becoming insolvent.

If you are not able to pay up immediately, the lender will normally look to discuss a payment plan rather than seeking bankruptcy, in order to maximise the amount they will receive.

Lenders are increasingly seeking charging orders against individuals’ homes, as this makes them a secured creditor, thus improving their position were the person concerned to go bankrupt.

It’s important that you understand fully the terms of your loan agreement and that you ensure the circumstances under which you will have to repay the loan yourself are outlined clearly.

Protecting yourself

It is often a lender requirement that you obtain independent legal advice from a solicitor before providing a personal guarantee, as this ensures you fully understand the legal risks.

For example, a personal guarantee can put your home at risk of being repossessed in the event that your business suffers financial problems and defaults on the repayments, other personal assets could also be at risk.

Therefore, it is more important than ever to seek independent legal advice from a personal guarantee solicitor to ensure you understand the risks and the circumstances under which you can be pursued for the value of the loan.

Personal guarantees with Palmers Solicitors

Our Company Commercial and Banking and Finance teams work together to provide essential business loan and startup funding legal advice, with fixed-fee arrangements to give you certainty and peace of mind.

We offer quick, clear guidance for personal guarantees, helping you understand your rights and obligations before entering into an agreement.

If you have already entered into an arrangement with a lender and your business is experiencing difficulties in meeting the repayment terms, we can check whether the guarantee has been correctly set up or whether there are grounds to dispute its validity.

We can also liaise with your lender to arrange a mutually acceptable repayment schedule which will allow your business to remain viable and also protect your residential property.

Get in touch with our company commercial team to find out how we can help you with directors’ personal guarantees. If you’re struggling with loan repayment liabilities, get in touch with our Banking and Finance team urgently.

We believe that working together brings the best results for our clients.

That’s why our Company Commercial and Banking and Finance teams work together to provide a joined-up service for businesses in Essex.

Our team boasts dedicated professionals who have hands-on experience in the sector, giving us a level of expertise that sets us apart from the competition.

We combine decades of cumulative experience in financial services with expertise in all aspects of company law.

Together, we ensure you have access to all the legal advice and services you need for business success at every stage in its lifecycle, from incorporation to sale or dissolution.

• Looking to acquire another company? Our Company Commercial solicitors will prepare the acquisition agreement, while our Banking and Finance team will assist to ensure that any finance in relation to the transaction is structured in the correct manner and ensure that the requirements of the lender are met correctly and timely.
• Need to provide a personal guarantee for a loan? We’ll advise you on your rights and the legal risks, but we’ll also help you restructure debt repayments.
• If you require assistance with buying assets from an Insolvency Practitioner, we can provide advice in relation to insolvency transactions and assist with the documentation
• Investing in commercial property? We can help you handle the legal paperwork and ensure that the requirements of the lender are met correctly and timely.

We’ve been providing expert legal advice for business clients for more than 40 years, serving from small to medium sized enterprises (SMEs), family businesses, and sole traders across Essex.

We make sure that we get to know your business thoroughly, so that we can provide a holistic, fully joined-up approach to meet your specific needs.

With access to the in-depth knowledge and expertise of both our Company Commercial and Banking and Finance teams, you can be confident that you’re receiving the very best in legal business advice.

Ready to take the next step? Get in touch to discover our joined-up business services today!