Family leave

Neonatal Care Leave and Pay: An Employer Guide

Neonatal Care Leave and Pay supports eligible parents whose baby needs an extended period of neonatal care. Employers need a compassionate response backed by accurate leave, notice and payroll processes.

Key point

Leave is a day-one employee right, while statutory pay has separate service and earnings tests. Keep the two eligibility decisions distinct and use current GOV.UK rates when processing pay.

01

When the statutory entitlement applies

For employees in England, Scotland and Wales, the baby must have been born on or after 6 April 2025, enter qualifying neonatal care within 28 days of birth and spend at least seven continuous full days receiving that care.

Qualifying care can include hospital care, specified consultant-led medical care after hospital and palliative or end-of-life care. Adoption and surrogacy situations can also qualify where the statutory relationship and caring-responsibility tests are met.

  • Care begins within the first 28 days after birth
  • At least seven consecutive full days of neonatal care
  • The employee has the required parental relationship
  • Leave is used to care for the baby
02

How much leave an employee can take

Eligible employees receive one week of leave for each seven continuous full days of neonatal care, up to a maximum of 12 weeks. Neonatal Care Leave is a day-one employment right and must be taken within 68 weeks of birth.

During neonatal care and the first week afterwards, known as tier 1, leave can be taken in separate blocks of at least one week. In tier 2, more than a week after care ends, remaining leave must be taken as one continuous block. The interaction with maternity, adoption and other parental leave needs careful planning.

  • A maximum of 12 weeks in addition to other family leave
  • Tier 1 leave can be non-consecutive
  • Tier 2 leave is one continuous block
  • All entitlement must be used within 68 weeks
03

Leave and statutory pay have different tests

An employee can qualify for leave without qualifying for Statutory Neonatal Care Pay. Pay generally requires 26 weeks of continuous employment by the relevant qualifying week, continued employment up to the required point and average earnings at or above the current lower earnings limit.

The statutory weekly rate and earnings threshold change over time. Payroll should use the current GOV.UK employer guidance and calculator rather than relying on a figure copied into a policy or old article. Employers may offer enhanced contractual pay if the scheme is documented clearly.

  • Assess leave eligibility separately from pay
  • Check the correct qualifying or relevant week
  • Use current statutory rates and earnings thresholds
  • Deduct tax and National Insurance where required
04

Notice depends on when leave is taken

Tier 1 recognises that neonatal care is unpredictable. An employee can usually notify the employer on the day leave starts, ideally before their normal start time or as soon as reasonably practicable. Pay notice can follow within the statutory window.

For tier 2, written notice is normally at least 15 days for one week of leave and 28 days for two or more weeks. Employers can agree to waive notice requirements, and a compassionate policy should explain who to contact and what information is needed without creating unnecessary barriers.

  • Record birth and neonatal-care dates accurately
  • Explain leave and pay notice separately
  • Use a simple declaration or employer form
  • Allow flexibility where circumstances make notice difficult
05

Prepare managers, payroll and policies

Update the family-leave policy, payroll configuration and manager guidance. Employees taking neonatal leave are protected from detriment and dismissal connected to the entitlement, and normal employment rights continue during leave.

Return-to-work and redundancy protections can be complex when neonatal leave combines with other statutory leave. Managers should avoid making assumptions, maintain sensitive contact and seek advice before decisions affecting the employee's role.

  • Publish a clear request and evidence process
  • Train managers to respond with empathy and confidentiality
  • Coordinate HR records with payroll
  • Check return-to-work and redundancy protections
  • Review enhanced support such as counselling or flexible working

Authoritative guidance: GOV.UK employer guide · Acas neonatal care guidance

Originally published 18 February 2025. This guide provides general information for employers and is not legal advice. Employment law and guidance can change; check current requirements and take advice on the facts of a live situation.

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