A guide to the new statutory right to Neonatal Care Leave and Pay

The UK government is set to implement The Neonatal Care (Leave and Pay) Act 2023 on 6 April 2025, introducing significant support for parents of babies who require neonatal care. This new legislation will provide eligible parents with the statutory right to both leave and pay during challenging times. Employers must, therefore, be aware of their legal obligation to ensure compliance and support affected employees appropriately.

Eligibility criteria for neonatal care leave and pay

Neonatal care leave is a day one right, meaning employees are entitled to it regardless of their length of service. To be eligible for neonatal care leave:

• The employee must have parental responsibility.
• The baby must be born on or after 6 April 2025.
• The baby must have received at least 7 consecutive days of neonatal care within the first 28 days after birth.

Neonatal care is defined as medical care received in a hospital, care outside the hospital after discharge but under the direction of a consultant (including monitoring by and visits from healthcare professionals arranged by the hospital), and palliative or end-of-life care.

Entitlement to neonatal care leave

Employees are entitled to up to 12 weeks of neonatal care leave. This is in addition to other statutory rights, such as maternity, paternity, adoption, and shared parental leave. The leave must be taken within 68 weeks of the baby’s birth.

Neonatal Care Leave is categorised into two tiers:

• Tier 1: Leave that begins when the employee’s child is receiving neonatal care and ends on the 7th day after the baby ceases to receive neonatal care. This means leave can be taken while the baby is still in neonatal care or within the first week post-discharge.
• Tier 2: Leave that begins after Tier 1 ends (more than 7 days after the child has stopped receiving neonatal care) and ends 68 weeks after the baby’s birth. This means leave can be taken from the second week post-discharge up to 68 weeks after birth.

Notice requirements for neonatal care leave

The required length of notice differs depending on when the leave is taken. For each week of Tier 1 period leave, notice must be given before the employee is due to start work on the first day of absence in that week, unless it is not reasonably practicable, in which case the employee must give as much notice as soon as it is reasonably practicable.

For a single week of Tier 2 period leave, notice must be given no later than 15 days before the first day of the Neonatal Care Leave to which the notice relates.

For two or more consecutive weeks of Tier 2 leave, notice must be given no later than 28 days before the first day of the neonatal care leave to which the notice relates.

Employers and employees can mutually agree to waive any notice requirements.

Neonatal Care Pay: Eligibility and rates

For statutory neonatal care pay (SNCP), in addition to the eligibility criteria, employees must:

• Have 26 weeks’ continuous service with the employer by the end of the 15th week before the baby’s due date.
• Earn at least the lower earnings limit.

Neonatal Pay will be at the statutory neonatal pay rate, or 90% of the employee’s average weekly earnings, whichever is lower. As of 6 April 2025, the statutory rate of pay will be £187.18 per week.

Employees must submit a request for Neonatal Pay to their employer within 28 days of starting Neonatal Leave.

Employers will be reimbursed for Neonatal Pay through HMRC in the same way as Statutory Maternity Pay.

Employer’s responsibilities for compliance and support

Employers must take steps to ensure compliance and support for their employees:

• Review Policies: Employers should review their existing family leave and pay policies to incorporate the new neonatal care leave provisions.
• Update Systems: Payroll systems should be updated to accommodate the statutory neonatal care pay rates and ensure smooth administration.
• Provide Training: HR and management teams should be trained on the different types of neonatal care leave (Tier 1 and Tier 2) and the corresponding notice requirements.
• Ensure Communication: Employers should communicate these changes to staff and ensure they understand their rights under the new law.
   

Supporting employees through neonatal care leave

The introduction of neonatal care leave and pay marks a significant advancement in supporting working parents during a critical time. By understanding and implementing these new entitlements, employers can help to create a compassionate workplace culture while ensuring compliance with ever-evolving employment legislation. If you are an employer and have any questions or concerns about what you need to do to prepare for these legal updates, please contact the BLHR and employment team, and we will be happy to assist you.


The new Neonatal Care (Leave and Pay) Act 2023 introduces important changes for employers. Watch our Employment Update webinar on demand for further insights and guidance.