A new right to neonatal care leave and pay: what employers need to know

read time: 5 mins
04.04.25

The Neonatal Care (Leave and Pay) Act 2023 is set to come into force from 6 April 2025 and will introduce new rights for employees to take additional leave and receive additional pay from day one of their employment where they are responsible for caring for a child in neonatal care. 

This article sets out a summary of what the new rights mean for employees and what action employers can take action to ensure they are complying.

What is neonatal care?

Neonatal care leave is being introduced to support employees whose baby is receiving, or has received, neonatal care.   

For these new rights to apply, neonatal care must have taken place or have begun within the first 28 days of birth, starting from the day after birth, and care must have been provided for at least seven continuous days, also starting from the day after birth. 

Neonatal care is defined with the new act as:

  1. Medical care received in a hospital;
  2. Medical care received in any other place which meets the following criteria:
    1. The child was an inpatient in hospital and care was received upon that child leaving hospital;
    2. The care is under the direction of a consultant; and
    3. The care includes ongoing monitoring by, and visits to the child from, healthcare professionals arrangement by the hospital.
  3. Palliative or end of life care. 

Who is eligible?

The new rights will be available to all employees from day one of their employment, but will not apply retrospectively and only apply in the case of babies born on or after 6 April 2025. 

To be eligible for neonatal care leave, on the date of birth, the employee must be:

  • A parent of the baby
  • An intended parent of the baby, in the case of surrogacy
  • The child’s adopter or prospective adopter, or partner of the same, under adoption arrangements
  • A partner to the baby’s mother with the expectation they will have responsibility for raising the child 

When can neonatal care leave be taken?

Neonatal care leave must be taken with 68 weeks of the baby’s birth, or in the case of adoption, within 68 weeks of placement or entry into the UK from overseas. 

It's likely that an employee requiring neonatal care leave will also be on some form of other family-related leave, i.e. maternity leave. Therefore, it's expected in most cases that neonatal care leave would be tagged on to the end of any other leave period so that it is compensated for, even if the compensation is delayed after the care is provided. 

How much neonatal care leave can be taken?

The duration of neonatal care leave will depend on the length of time which the baby is receiving neonatal care, but the new rights cap the leave at a maximum of 12 weeks. For every week that the baby receives uninterrupted neonatal care, the employee is able to take one week of neonatal care leave. An 'uninterrupted week' shall start counting from the day after the care starts. 

Tier 1 and tier 2 neonatal care leave

The new legislation sets out that there are two tiers of leave that can be taken. The key difference between the two is that tier 1 is intended to apply to employees who are not otherwise absent due to some other form of family leave, whereas tier 2 leave applies to employees who are currently absent from work on family leave, i.e. maternity leave, and want to tag their neonatal care leave onto the end of the leave period. 

What are the notice requirements?

The notice requirements for neonatal care leave are similar to those for other forms of parental leave. The employee is required to give notice to their employer that they intend to take neonatal care leave and confirm:

  • Their name
  • The baby’s date of birth
  • The start date(s) of neonatal care
  • The end date of the neonatal care (if applicable)
  • The date when the employee wants to take neonatal care leave
  • The number of weeks being taken
  • Their eligibility to take the leave, i.e. that they have a qualifying relationship with the baby and the care being received meets the criteria to be defined as neonatal care 

The notice requirements differ slightly for tier 1 and tier 2 leave. For tier 1 leave, notice must be provided before the employee’s first day of absence or as soon as reasonably practicable. For tier 2 leave, 15 days’ notice must be given to take a single week of leave, or in the case of taking two or more consecutive weeks, 28 days’ notice must be given. 

What is the pay entitlement?    

Employees taking neonatal care leave will receive statutory neonatal care pay (SNCP). The rate of pay and eligibility requirements are the same as those for other forms of statutory pay:

  • The employee must have 26 weeks' continuous service
  • The employee must earn at least £125 per week

If eligible, the employee will receive either £187.18 per week or 90% of their average weekly earnings, whichever is lower. This rate is subject to change each April. 

What other rights do employees on neonatal care leave have?

During any period of neonatal care leave, the employee will remain entitled to the same terms of employment other than their pay, which will be paid at the rate of statutory neonatal care pay, subject to meeting the eligibility requirement. This also depends on whether the employer offers any enhanced neonatal care pay or leave. 

Employees on neonatal care leave also qualify for extended protection from redundancy, if they do not otherwise receive protection via some other type of parental leave, i.e. maternity leave. Once six weeks of neonatal care leave have been taken, this protection means that if an employee’s role becomes redundant during the neonatal care leave or within 18 months after it concludes, the employer must offer them a suitable alternative vacancy where one is available. 

Employees are also protected against dismissal or being subject to a detriment for exercising their right to take neonatal care leave. If an employer dismisses an employee for any reason connected with taking neonatal care leave, it will be deemed automatically unfair, and the employee will not be required to have two years continuous service to bring an automatic unfair dismissal claim on these grounds. 

How do these new rights interact with other family leave rights?

FAQs

What action do employers need to take?

In light of the new regulations, employers should familiarise themselves with what the new rights mean and how they will work in practice. It's important that employers update their existing policies or introduce new policies as soon as possible which clearly set out their employees entitlement to these new rights. Employers may also wish to consider training for HR staff or line managers to educate them about these new rights. 

If your business needs assistance with updating its existing policies or preparing new ones, or if you have any questions about the introduction of these new rights, please get in touch with Ashfords' employment team. 

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