The Neonatal Care (Leave and Pay) Act 2023 received Royal Assent on 24 May 2023 and came into force on 6 April 2025. This new statutory entitlement will give thousands of eligible parents with children in neonatal care the right to additional leave and pay. This article provides guidance for employers to understand these changes.
What is neonatal care?
Neonatal care refers to the care a newborn baby receives if they are born prematurely, have a low birth weight or were born with a medical condition requiring specialised treatment. Neonatal care may include:
- medical care received in a hospital
- medical care received elsewhere under the direction of a consultant following hospital discharge, including any ongoing monitoring and visits by healthcare professionals
- palliative or end of life care
Who is eligible to take neonatal care leave (NCL)?
The Neonatal Care (Leave and Pay) Act 2023 was introduced under the Employment Rights Bill and entitles working parents to additional time off if their baby is receiving neonatal care. As part of the government’s pledge to strengthen family-related policies, employees will now be entitled to NCL from day one of employment if they are:
- the baby’s birth parent
- the baby’s mother or father
- the baby’s intended parents in a surrogacy
- the partner of the baby’s mother or birth parent (including same sex couples)
- the baby’s adopter, or the partner of the adopter if they will have parental responsibility
To qualify, the baby must be born on or after 6 April 2025. Eligible parents can take NCL leave if neonatal care has been received within the first 28 days of birth (starting from the day after the baby is born) and has continued for at least 7 continuous days (from the day after neonatal care starts).
How is NCL and pay calculated?
Parents will be able to take one week of NCL for each week their baby receives neonatal care, up to a maximum of 12 weeks, which must be taken within 68 weeks of the baby’s birth. NCL is taken in arrears and can be added to the end of the employee’s statutory maternity or paternity leave.
There are 2 tiers of NCL:
- Tier 1 is the period when the baby is receiving neonatal care, including 1 week post discharge, and can be taken in non-continuous blocks of a minimum of one week at a time.
- Tier 2 is for the period outside of tier 1 and before the end of 68 weeks from the date of the baby’s birth. Any leave taken in this period must be in one continuous block.
The statutory rate for neonatal care leave is £187.18 per week or 90% of average weekly earnings, whichever is lower. Although NCL is a day one right, parents must have 26 weeks’ service and meet a minimum earnings threshold to be eligible for statutory neonatal care pay.
What are the notice requirements for NCL?
Employees are expected to provide the required notice of their intention to take NCL. The notice should include the baby’s date of birth, the date neonatal care started, (and ended, if applicable), the date on which the employee intends to start NCL and the number of weeks to be taken.
Depending on when the leave is taken, the required length of notice will differ. Under tier 1, (see above), notice must be given in respect of each week of NCL before the employee is due to start work on the first day of absence, or as soon as reasonably practicable. Under tier 2, an employee must give a minimum of 15 days’ notice for a single week of NCL, or 28 days for two more consecutive weeks of leave.
The employer and employee can also agree to mutually waive any notice requirements.
Protections of NCL
Employees who take NCL are entitled to the same protections that apply to other family-related leave, with the exception of pay.
Employees have the right to return to the same job, or a suitable alternative, if their role is made redundant during a period of statutory NCL or for the ‘additional protected period’. This period applies when the employee has taken at least six consecutive weeks of leave and continues for 18 months from the date of birth/adoption.
Given the complexities of this new legislation, it would be wise for employers to ensure they have clear policies in place which set out statutory rights to NCL and pay, including any other family-related leave, and offer refresher training to managers surrounding family leave entitlements.
If you’re an employer and require further support implementing family-related policies or delivering training in this regard, please contact us on 01942 727200 or email enquiries@employeemanagement.co.uk for a free 1 hour, no obligation chat with a member of the team.