The government has confirmed that the Neonatal Care (Leave and Pay) Act 2023 will come into force on 6 April 2025, introducing a new day-one employment entitlement to neonatal care leave. Statutory neonatal care pay will be available to eligible employees who meet service and earnings criteria.
New neonatal care rights
Currently, in the absence of specific leave provisions, parents of newborn babies requiring neonatal care have to depend on discretionary employer support or statutory leave not designed for prolonged hospital stays, such as maternity and paternity leave.
The Neonatal Care (Leave and Pay) Act 2023, coming into force on 6 April 2025, introduces a dedicated entitlement for neonatal care leave and pay. The provisions apply to employed parents whose babies are admitted to neonatal care within the first 28 days of life and remain in hospital for at least 7 consecutive days.
Eligible parents will be entitled to up to 12 weeks of Neonatal Care Leave (NCL), with a minimum entitlement of one week, in addition to existing leave entitlements such as maternity, paternity and shared parental leave. Eligible parents will be able to take neonatal care leave in blocks of a week, for each week their baby is in hospital, up to a maximum of 12 weeks. The leave must be taken within 68 weeks of the baby’s birth.
Parents who meet specific criteria may also qualify for Statutory Neonatal Care Pay (NCP), which will be available to those meeting continuity of service and minimum earnings thresholds.
NCL will be a day one right for employees, providing immediate access to leave, while NCP will require a qualifying period of service.
Employee protections
Employees who take neonatal care leave will have the same employment protections as those associated with other forms of family-related leave (such as maternity or paternity leave). These include protection from dismissal or detriment as a result of taking the leave.
Implementation timeline
The Neonatal Care (Leave and Pay) Act 2023 sets the framework for providing eligible parents with statutory rights to neonatal care leave and pay. To implement these rights, the government has introduced two key sets of regulations:
- Neonatal Care Leave and Miscellaneous Amendments Regulations 2025: These regulations detail the specific provisions for Neonatal Care Leave (NCL), including eligibility criteria, the process for requesting leave, and the protections afforded to employees during their leave period. They also amend existing employment legislation to integrate the new leave entitlements seamlessly.
- Statutory Neonatal Care Pay (General) Regulations 2025: These regulations outline the conditions under which eligible employees can receive Statutory Neonatal Care Pay (SNCP), specifying the qualifying criteria, the rate of pay, and the duration for which the pay is available. They provide guidance on the administrative processes employers must follow to implement and manage these payments.
The Neonatal Care (Leave and Pay) Act was passed in 2023. The government has laid the draft Neonatal Care Leave and Miscellaneous Amendments Regulations 2025 and Statutory Neonatal Care Pay (General) Regulations 2025 before Parliament, and subject to approval are due to take effect from 6 April 2025, applying to parents of babies born on or after this date.
Detailed guidance is awaited, to clarify key aspects such as eligibility criteria, how and when employees can apply for leave and pay, notice and evidence requirements, employer obligations, and the medical conditions qualifying for neonatal care leave, to help ensure both employers and employees fully understand their rights and responsibilities under the new law.
In addition to the final regulations, the Department for Business and Trade (DBT) is also expected to issue practical guidance for employers and employees to cover topics such as handling leave requests, making payroll adjustments for statutory neonatal pay, and understanding the rights and protections available to employees. Employers should also receive instructions from HMRC on how to reclaim statutory neonatal pay through the usual systems, similar to other statutory payments like maternity pay.
Best practice for employers
UK employers should take steps to prepare for the introduction of neonatal care leave and pay. Key considerations include:
- Policy updates: Review and update company policies to reflect the new entitlements.
- Payroll adjustments: Ensure payroll systems can accommodate Statutory Neonatal Care Pay calculations. Assess eligibility criteria, including continuity of service and minimum earnings thresholds.
- Employee support: Provide guidance and support to employees who may need to take neonatal leave. Establish clear processes for requesting and managing neonatal care leave.
- Training and awareness: Train managers and HR professionals to understand the new rights and handle requests appropriately.
- Supportive culture: Nurture a supportive workplace culture that acknowledges the challenges faced by parents with babies in neonatal care.
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Author
Founder and Managing Director Anne Morris is a fully qualified solicitor and trusted adviser to large corporates through to SMEs, providing strategic immigration and global mobility advice to support employers with UK operations to meet their workforce needs through corporate immigration.
She is a recognised by Legal 500 and Chambers as a legal expert and delivers Board-level advice on business migration and compliance risk management as well as overseeing the firm’s development of new client propositions and delivery of cost and time efficient processing of applications.
Anne is an active public speaker, immigration commentator, and immigration policy contributor and regularly hosts training sessions for employers and HR professionals
