Legal update: New right to neonatal care leave and pay from 6 April 2025

Sarah Furness, Partner, Employment Law & HR

The Neonatal Care (Leave and Pay) Act 2023 gives parents, whose children are born on or after 6 April 2025, a statutory right to neonatal care leave and pay where the eligibility criteria are met.

The intention behind this change in the law is to ensure employed parents can take leave in addition to their other family leave (such as maternity, adoption, shared parental and paternity leave) and it can extend such other family leave by the amount of time their baby is in neonatal care.

How is neonatal care defined?
Neonatal care is care provided to babies who require medical care in a hospital, or outpatient care, when they are born and it includes end of life care. For this new right to apply, neonatal care must start within 28 days of the baby being born and it must continue without interruption for at least seven consecutive days.

Entitlement to neonatal care leave
Employees are entitled to one week of leave for every week their child receives neonatal care, up to a maximum of 12 weeks. However, an employee may not take neonatal care leave in connection with the first week their child spends in neonatal care and the leave must be taken within 68 weeks of the child’s birth or placement for adoption.

The right to neonatal care leave is available from day one of employment; all employees will therefore be eligible if they are the child’s parent or partner of a parent, and expect to have responsibility for the upbringing of the child. Parents also gain unfair dismissal protection if they are dismissed in connection with taking this leave and this protection will apply from day 1 of employment.

Notice provisions
Confusingly neonatal care leave is split into tier 1 and tier 2 periods. A tier 1 period occurs when the child is actively receiving neonatal care and for 7 days afterwards. Employees should give notice of tier 1 leave as soon as is reasonably practicable. A tier 2 period occurs when neonatal care leave is taken where the child is no longer receiving neonatal care, for example mothers can take neonatal leave after their maternity leave has ended if their child spent time in neonatal care and the eligibility criteria are met. Employees must give no less than 15 days’ notice in writing to take one week of tier 2 leave, and no less than 28 days’ notice for two weeks or more.

Entitlement to neonatal care pay
Neonatal care pay is payable at the same rate as other statutory family pay (such as statutory maternity, adoption and paternity pay) provided the employee satisfies the usual requirements relating to continuous employment and minimum earnings thresholds.

Summary
Neonatal care leave and pay allows parents an additional amount of time off work if their baby needs neonatal care and it in effect extends their maternity and/or other family leave by the amount of time their baby is in neonatal care. As always with family leave entitlements, the rules are complex. Employers however need to be aware of this new right and should introduce a policy setting out the eligibility criteria for the leave and pay and notice provisions.

For further information, contact Sarah Furness or anyone in the team.