new neonatal care leave and pay regulations

On the 6^th April 2025, Neonatal Care (Leave and Pay) Act 2023 (the Act) will come into effect, almost two years after receiving the Royal Assent on the 24^th May 2023. On 20^th January, the Government submitted draft regulations to Parliament as to how this leave and pay will work in practice. The new day one right to neonatal care leave and pay will result in thousands of working families with babies in neonatal care becoming entitled to additional time off work.

In this article, we will take a closer look at what the new neonatal care leave and pay regulations are and what they will mean for employers.

Current situation

At the moment, parents of newborn babies in neonatal care do not have the right to additional time off. As a result, parents must depend on the discretion of their employer, their annual leave or statutory leave such as maternity or paternity leave which is not designed for this specific situation.

From the 6^th April 2025, eligible parents will have the right to take neonatal leave, in addition to existing leave entitlements to spend time with their baby in neonatal care. What’s important to note is that Neonatal Care Leave (NCL) will be a day one right, whereas to receive Statutory Neonatal Care Pay (SNCP), parents will need to be employed for at least 26 weeks.

What is neonatal care?

The Neonatal Care Leave and Miscellaneous Amendments Regulations 2025 (NCL Regulations) define neonatal care as:

• Medical care received in a hospital.
• Medical care received in any other place where:
  • the child was an inpatient in hospital and the care is received upon that child leaving hospital;
  • the care is under the direction of a consultant; and
  • the care includes ongoing monitoring by, and visits to the child from, healthcare professionals arranged by the hospital where the child was an inpatient.
• Palliative or end of life care.

Entitlement

For an employee to be entitled to NCL, their baby must be admitted to neonatal care in the first 28 days after birth for a period of at least seven continuous days. NCL will need to be taken within 68 weeks of the baby’s birth. Parents will be entitled up to 12 weeks of such leave with a minimum entitlement of one week. Parents will be able to take such leave in blocks of a week. This is in addition to other leave entitlements such as maternity, paternity and shared parental leave.

The NCL Regulations also refer to two different tiers which affect how neonatal care leave can be taken. When the baby is in neonatal care or up to seven days after neonatal care ends, leave can be taken in non-consecutive blocks of a minimum of one week (Tier One). Any leave that is taken in the remainder of the 68 weeks must be taken in one continuous block (Tier Two).

Neonatal care pay

The Statutory Neonatal Care Pay (General) Regulations 2025 (SNCP Regulations) cover pay during NCL.

To qualify, parents will need to be employed for at least 26 weeks and their average earnings must not be less than the lower earnings limit set by the government each tax year. This mirrors the current obligations in place for statutory maternity leave.

What does it mean for employers?

• Policy – Employers will need to ensure that their business has a clear policy which sets out the statutory right to NCL and SNCP alongside policies such as maternity, paternity and shared parental leave.
• Training – It might be valuable to provide your HR Department or equivalent with refresher training on family leave alongside the introduction of the new neonatal leave and pay.
• Awareness and Support – Ensure that managers and HR are aware of how to handle such delicate requests and acknowledge the challenges employees will have to face with their babies in neonatal care.
• Payroll – Payroll systems need to be adjusted to the new leave and must accommodate the new pay calculations. It is therefore vital that employers dedicate their attention to payroll adjustments.
• Timeframe – It is also important that employers understand the timeframe and who will be affected by the new regulations. With the new regulations coming into effect on the 6^th April 2025, only the parents of babies born on or after 6^th April 2025 will be eligible. This means that the parent of a baby born before this date will not be eligible because the new regulations would not be in force yet. It is therefore important that businesses pay attention to this detail in the first months that the regulations are in force.

CONCLUSION

In conclusion, the new neonatal care leave and pay regulations tackle the problem that many parents face with lack of appropriate leave in such delicate circumstances. Nonetheless, employers will need to take steps to adjust their business to the new regulations.

If you need help drafting or amending your family leave policies, our Peace of Mind Team will be happy to help. If you have any questions about the new neonatal care leave and pay regulations or have any other employment law related questions, please contact our Employment Law team by emailing employment@warnergoodman.co.uk or by calling 023 8071 7717.