Understanding Neonatal Leave: What Employers Need to Know
From 6 April 2025, a new statutory entitlement came into force in the UK: Neonatal Care Leave and Pay. This legislation, introduced under the Neonatal Care (Leave and Pay) Act 2023, provides vital support for working parents whose babies require neonatal care in the first weeks of life. As an employer, you need to understanding how to be compliant with the legislation as well as providing compassionate support for your staff during a critical time.
What Is Neonatal Care Leave?
Neonatal care leave allows eligible parents to take up to 12 weeks of paid leave if their baby is admitted to neonatal care within the first 28 days of birth. This leave is in addition to other statutory entitlements such as maternity, paternity, and shared parental leave.
To qualify, the baby must receive at least 7 consecutive days of neonatal care, which can include:
- Hospital-based medical care
- Consultant-led care outside hospital
- Palliative or end-of-life care
Who Is Eligible?
The right to neonatal care leave applies from day one of employment. Eligible parents include:
- Birth mothers and fathers
- Partners, spouses, and civil partners of the birth parent
- Adoptive parents and intended parents in surrogacy arrangements
Each eligible parent is entitled to their own leave, even if they work for the same employer.
Duration and Pay
Parents can take 1 to 12 weeks of leave, depending on how long their baby receives neonatal care. Leave must be taken in weekly blocks, and the entitlement is calculated as 1 week of leave per week of care.
Although the leave is eligible for all employees from day one of employment, not every employee will qualify to receive the statutory pay. To qualify for Statutory Neonatal Care Pay, employees must:
- Have 26 weeks of continuous service before the relevant week
- Earn at least £125 per week on average
- Be employed in the week before the pay period begins
As of April 2025, statutory pay is the lower of £187.18 per week or 90% of average weekly earnings. Note that this changes in April every year.
Notice Requirements
There are two tiers of leave with different notice rules:
- Tier 1 (during neonatal care): Notice should be given before the first day of leave, but flexibility is allowed if the situation is urgent.
- Tier 2 (after neonatal care ends): Employees must give 15 days’ notice for 1 week of leave, or 28 days’ notice for 2+ weeks. This notice must be in writing.
Redundancy Protection
Employees taking neonatal care leave are now included in the redundancy protected period, meaning they must be offered suitable alternative roles in redundancy situations, similar to those on maternity or adoption leave.
How we can help
This legislation marks a significant step in recognising the emotional and practical challenges faced by parents of premature or ill newborns. By supporting staff through neonatal care leave, employers can foster a culture of compassion and compliance. If you need help amending any of your policies or contracts to ensure they are compliant, contact us to arrange a free, no obligation triage call