The government has confirmed that the Neonatal Care (Leave and Pay Act) 2023, will come into force from 6 April 2025.
At present, there is no specific statutory right to leave or pay for employees if their baby requires specialist neonatal care after birth. They must use their existing statutory entitlement such as statutory maternity, adoption, shared parental or paternity leave whilst their baby is in hospital.
What is Neonatal Care Leave?
Neonatal Care Leave will provide parents with leave 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, with a minimum entitlement of one week, in addition to existing leave entitlements such as maternity, paternity and shared parental leave.
Parents will be able to take neonatal care leave in blocks of one week, for each week their baby is in hospital, up to a maximum of 12 weeks.
This leave must be taken within 68 weeks of the baby’s birth.
Who is eligible for Neonatal Care Leave?
Neonatal Care Leave will become a day one right for employees.
To be eligible, an employee must have a parental relationship with a child who is receiving or has received neonatal care. The relationship requirement is likely to be similar to that for entitlement to parental bereavement leave.
Neonatal care must continue uninterrupted for a period of at least seven days beginning with the day after the care started, in order for an employee to be entitled to Neonatal Care Leave.
How much Neonatal Care Pay will an employee be entitled to?
It is anticipated that the rate of pay, will be the same as is set for other family entitlements and set by the government each year.
We therefore anticipate for 2025/26, employees will be entitled to £187.18 per week.
Who is eligible for Neonatal Care Pay?
Whilst neonatal care leave is a day one right, the right to pay differs.
To be eligible, an employee must:
- Have at least 26 weeks’ continuous service; and
- Not earn less than the lower earnings limit.
What should Employers do in preparation?
Employers should begin taking steps to prepare for the implementation of neonatal care leave and pay by doing the following:
- Review Policies: Review and update company policies to reflect the new entitlements.
- Payroll: ensure payroll systems can process neonatal pay.
- Training: consider providing training for HR and managers on the new entitlements to ensure that employee enquiries and requests are handled correctly.
- Support: provide guidance and support to employees who may need to take neonatal leave.