The Neonatal Care (Leave and Pay) Act 2023 will provide crucial support to the parents of (or otherwise those with responsibility for the care of) babies who need neonatal care shortly after their birth.
Eligibility
Employees will be eligible for neonatal care leave from their first day of employment. Only babies born on or after 6th April 2025 will have the right to apply for neonatal care leave.
The employee will require at least 26 weeks’ continuous service with their employer, and to meet the minimum average earnings threshold of (currently) £123 per week, in order to qualify for paid leave.
In addition, the employee must be:
- one of the baby’s parents;
- one of the baby’s intended parents (surrogacy);
- the partner of the baby’s mother (provided they live with the mother and there is an expectation they will be responsible for raising the baby; or
- one of the prospective parents of an adopted baby.
Notice requirements, leave and pay
Eligible parents can take up to 12 weeks of neonatal leave, in addition to other statutory leave entitlements such as maternity, paternity, and adoption leave. The leave can be taken in non-continuous blocks within 68 weeks of the baby’s birth. This extended period is designed to ensure that parents can be with their newborns during critical early stages, without the added stress of work commitments.
The leave applies to parents of babies admitted to neonatal care within the first 28 days of life, with a continuous hospital stay of at least seven days. Employees may not take neonatal leave until the day after that seven-day period.
The pay will be at the statutory rate (£187.18 from April 2025), similar to other statutory family leave payments. This ensures that while parents are on leave, they still receive some financial support. The employer can offer an enhanced rate of pay if they wish.
The new legislation outlines two distinct phases for neonatal care leave.
The first phase starts when the child begins neonatal care (after the seven-day qualifying period) and concludes seven days after the care ends. During this phase, leave can be taken in non-continuous blocks of at least one week.
The second phase covers the remaining part of the 68-week period and requires the leave to be taken in one continuous block. Notice requirements differ between the two phases, with Phase 1 having a shorter notice period. However, both the employer and employee can agree to waive these notice requirements.
What should employers be doing to prepare?
- Employers should update their family leave policies to incorporate the new neonatal leave provisions.
- ensure your HR systems and payroll processes are equipped to handle the new leave and pay entitlements.
- communicate these changes to employees, particularly those in managerial and HR roles.
- consider whether training sessions may be necessary to ensure that staff understand the new rights and how to administer them effectively.
- understand (or seek expert HR advice from Hill HR) how the different leave entitlements can overlap with neonatal leave. This includes maternity leave, paternity leave, adoption leave and shared parental leave.
If you have any questions about Neonatal Leave and Pay, or any other HR matter please contact us.
