3rd April 2025

Under the Neonatal Care (Leave and Pay) Act 2023, employees who become parents on or after 6 April 2025 will be entitled to take paid leave if their newborn requires neonatal care. This will be a ‘day one’ right with no qualifying period of service necessary to be eligible.

What is “Neonatal Care”?

“Neonatal care” includes medical care received by a baby in a hospital, and medical care received in another place where:

• the child was an inpatient; and
• continues to receive ongoing monitoring and visits from healthcare professionals arranged by the hospital where the child was an inpatient; and
• the care is under the direction of a consultant.

The employee’s child must receive neonatal care within 28 days of the birth, and the care must last for a continuous period of seven days.

Entitlement

Employees will be entitled to one week of neonatal care leave for each “qualifying week” their child spends receiving neonatal care. The leave must be taken in weekly blocks up to a maximum of 12 weeks.

The leave must be taken within the first 68 weeks of the child’s birth, effectively acting as a ‘bolt-on’ to other types of family leave as most parents will already be taking maternity, paternity, or adoption leave when the child is receiving neonatal treatment.

Employees who exercise their right to take neonatal care leave are protected from being dismissed or subjected to a detriment because they took the leave. They are also entitled to be offered suitable alternative employment as a priority in a redundancy situation.

Statutory Neonatal Care Pay

If an eligible employee has 26 weeks’ continuous service and earns over the lower earnings limit, they will be entitled to Statutory Neonatal Care Pay (SNCP). SNCP will be paid at the statutory rate of £187.18 per week or 90% of the employee’s average weekly earnings, whichever is lower.

Key Considerations for Employers

This Act is hugely significant for new parents as it introduces dedicated time for them to spend with their newborn during what is likely to be a challenging period.

Employers must ensure they are prepared to handle neonatal leave requests when received, and understand how to properly record the leave, including an appreciation of how the entitlement interacts with other established types of family leave. They must also guarantee that relevant employees are treated appropriately in any redundancy exercise and be mindful of the new protections these parents are afforded if they choose to exercise their new right.

Employers ought to update their family leave policies to incorporate this entitlement and ideally have a specific policy setting out the statutory entitlement to neonatal care leave and pay, including any enhanced terms employers may want to offer. This will ensure employees understand whether they qualify for the leave and what notification requirements they must comply with and employers are equipped to handle requests.

If you would like support with understanding the impact of neonatal care leave and pay on your business, please contact our Employment team.

We are expecting the Employment Rights Bill to be passed in the coming months bringing into force all these changes from 2026. In anticipation, we will be hosting a seminar explaining the key changes and their practical implications for employers in September 2025. Please click here to register your interest in attending and we will be sure to send you an invite.