What is Neonatal Care Leave and Pay?
Neonatal Care Leave (NCL) is a newly introduced entitlement that allows eligible employees to take up to 12 additional weeks off work when their baby requires neonatal care. Unlike existing parental leave entitlements, this leave is designed specifically for parents whose newborns need extra medical attention in the first weeks of life.
Statutory Neonatal Care Pay (SNCP) accompanies this leave and provides financial support to eligible employees during their time away from work. This aims to relieve some of the financial pressure on families facing a difficult and emotionally draining situation.
Who is Eligible for Neonatal Care Leave?
The right to Neonatal Care Leave is a day-one right, meaning it applies from the first day of employment without a qualifying service period. Employees can take NCL if:
Their baby is born on or after 6 April 2025.
The baby is admitted to neonatal care within the first 28 days of birth.
The baby has a continuous stay of at least seven full days in neonatal care.
The care takes place in a hospital, under a consultant’s direction, or includes palliative/end-of-life care.
This law covers both biological and adoptive parents, including those in surrogacy arrangements.
How Much Leave Can Employees Take?
Eligible employees can take up to 12 weeks of Neonatal Care Leave, in addition to other parental leave entitlements such as maternity, paternity, or shared parental leave. This means a parent can extend their total leave period if their child requires hospitalisation after birth.
The leave must be taken within 68 weeks of the child’s birth and can be split into different periods depending on the baby’s medical needs. The law divides leave into two key periods:
Tier 1 Period: While the baby is still receiving neonatal care, parents can take leave in non-consecutive weeks.
Tier 2 Period: After the baby is discharged, any remaining leave must be taken in consecutive weeks.
This flexibility ensures parents can adapt their leave to their baby’s recovery journey.
Who Qualifies for Statutory Neonatal Care Pay (SNCP)?
Not all employees taking Neonatal Care Leave will qualify for pay. To be eligible for Statutory Neonatal Care Pay (SNCP), an employee must:
Have at least 26 weeks of continuous service with their employer before the start of their NCL.
Earn at least the lower earnings limit (currently £123 per week, but subject to change).
Provide sufficient notice and evidence of their baby’s hospital stay.
SNCP will be paid at the statutory prescribed rate, which from April 2025 is £187.18 per week or 90% of the employee’s average weekly earnings (whichever is lower).
Employees can receive SNCP for up to 12 weeks, depending on how much leave they take.
We're here at hand to guide you through the process
Employee Handbook & HR Policies
Regularly updating your Employee Handbook and HR policies ensures they stay compliant with the latest employment laws and best practices. Clear, up-to-date policies help prevent misunderstandings, reduce legal risks, and create a fair, well-managed workplace.
Notice Requirements for Employees
Employees must provide their employer with notice before taking Neonatal Care Leave. The notice period depends on when the leave is taken:
Tier 1 Period (while the baby is still in neonatal care): Employees must inform their employer before they are due to start work on the first day of each leave week.
Tier 2 Period (after the baby is discharged): Employees must give formal notice:
15 days in advance if taking one week of leave.
28 days in advance if taking two or more consecutive weeks of leave.
Employers can choose to waive these notice requirements to support their employees better during challenging circumstances.
Protections for Employees
The Neonatal Care (Leave and Pay) Act 2023 includes strong protections for employees who take this leave. Employers should be aware that:
Employees cannot be dismissed or penalised for taking Neonatal Care Leave.
If an employee takes at least six continuous weeks of NCL, they are entitled to redundancy protection, similar to protections available for maternity leave.
Employees have the right to return to their original role or an equivalent position with the same terms and conditions after their leave ends.
Failing to comply with these protections could result in legal action against the employer.
How Employers Should Prepare for the New Law
To ensure compliance with these upcoming changes, businesses should start preparing now. Here’s what employers need to do:
1. Update HR Policies and Employee Handbooks
Employers should review and update their HR policies to include Neonatal Care Leave and Pay. Ensuring clear communication about eligibility, notice requirements, and pay entitlements will help both HR teams and employees navigate these changes.
2. Train Managers and HR Teams
HR professionals and managers should be trained on the new law so they can respond appropriately to leave requests and provide support to employees experiencing neonatal care situations.
3. Adjust Payroll Systems
Employers must ensure their payroll systems are set up to process Statutory Neonatal Care Pay correctly. This includes tracking employee leave periods and ensuring payments are made at the correct statutory rate.
4. Consider Offering Enhanced Leave and Pay
Some businesses may choose to go beyond the statutory requirements by offering additional paid leave, reducing notice periods, or providing further support such as counselling or flexible working arrangements.
5. Communicate with Employees
It’s essential to inform employees about their new rights under this legislation. Employers can do this through company-wide announcements, intranet updates, or dedicated HR support sessions.
Why This Law Matters?
This new legislation is a significant step forward in improving workplace support for new parents. For families facing neonatal care challenges, having job security and financial assistance can make a real difference. For businesses, adopting a compassionate approach can enhance employee loyalty, improve retention, and contribute to a supportive workplace culture.
By preparing now, employers can ensure a smooth transition when the law takes effect in April 2025, creating a work environment that truly supports employees through life’s most challenging moments.
You can read more about these changes from Gov.uk
