New Neonatal Legislation Coming in April: What Employers and Parents Need to Know

26 Mar 2025

Published in: Member News

From April 2025, UK parents of babies in neonatal care can take up to 12 weeks’ leave under new legislation, with statutory pay for eligible employees. A vital update for employers and families—find out what’s changing and how to prepare.

Starting April 6, 2025, the UK will implement the Neonatal Care (Leave and Pay) Act 2023, introducing significant support for parents with newborns requiring neonatal care. This legislation acknowledges the challenges faced by families during such critical times and ensures that parents can be present with their infants without the added concern of work obligations.

1. Understanding Neonatal Care Leave (NCL)

Neonatal Care Leave is a new statutory entitlement that allows eligible employees to take time off work when their newborn requires neonatal care. This leave is designed to provide parents with the necessary time to support and care for their infants during hospital stays and beyond.

2. Eligibility Criteria

To qualify for Neonatal Care Leave, an employee must meet the following conditions:

  • Employment Status: All employees, regardless of their length of service, are eligible for NCL from the first day of their employment.
  • Parental Relationship: The leave applies to parents, including biological, adoptive, and intended parents (in cases of surrogacy), as well as partners living with the child's mother in an enduring family relationship.
  • Neonatal Care Conditions: The newborn must be admitted to neonatal care within 28 days of birth and remain in care for a continuous period of at least seven days.

3. Duration and Timing of Leave

Eligible parents can take up to 12 weeks of Neonatal Care Leave, in addition to other parental leave entitlements such as maternity, paternity, or adoption leave. The leave must be taken within 68 weeks of the child's birth. The structure of the leave is categorised into two tiers:

  • Tier 1: Leave taken while the baby is receiving neonatal care or within seven days after the care ends. During this period, leave can be taken in non-consecutive blocks of at least one week. Minimal notice is required—often by the time the employee is due to start work on the first day of each week of leave.
  • Tier 2: Leave taken more than seven days after neonatal care has ended. In this period, leave must be taken in one continuous block. Employees are required to give 15 days’ notice for a single week of leave or 28 days’ notice for two or more consecutive weeks.

4. Neonatal Care Pay (NCP)

While Neonatal Care Leave is a day-one right, eligibility for Neonatal Care Pay requires:

  • Continuous Employment: At least 26 weeks of continuous service with the same employer by the 15th week before the expected week of childbirth.
  • Earnings Threshold: Average gross weekly earnings must be at or above the Lower Earnings Limit for National Insurance purposes, which is £123 per week as of April 2024-25.

Eligible employees will receive statutory pay at a rate of £187.18 per week or 90% of their average weekly earnings, whichever is lower, for up to 12 weeks.

5. Employer Preparations

Employers should take proactive steps to accommodate this new legislation:

  • Policy Updates: Review and update HR policies and employment contracts to include provisions for Neonatal Care Leave and Pay.
  • Manager Training: Ensure that managers are trained to handle neonatal leave requests sensitively and in compliance with the new regulations.
  • Employee Awareness: Communicate the new entitlements to all employees, ensuring they are informed about their rights and the procedures to apply for leave and pay.

6. Conclusion

The introduction of the Neonatal Care (Leave and Pay) Act 2023 marks a significant advancement in supporting working families during challenging times. By providing dedicated leave and financial support, the UK government acknowledges the importance of parental presence in the critical early stages of a child's life. Employers and employees alike should familiarise themselves with these new rights to ensure a smooth transition when the legislation comes into effect on April 6, 2025.

Submitted by Emma from EC Human Resources Ltd
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