An overview of the newly introduced Neonatal Care (Leave and Pay) Act 2023 and what it means for employers.
The Neonatal Care (Leave and Pay) Act came into force on 6th April 2025. The Bill will provide support for parents of babies who are admitted to neonatal care within their first 28 days of life and remain in hospital for at least 7 consecutive days.
Eligibility for neonatal care leave
The leave entitlement is a day one right and no minimum service period is required. Employees will be entitled to take one weeks’ neonatal care leave for every uninterrupted week their baby receives neonatal care. This can be taken in week-long increments. The minimum period of neonatal care leave is 1 week, and a maximum period of 12 weeks.
Neonatal Care Pay
Eligible parents who meet minimum requirements relating to continuity of employment (at least 26 weeks with their current employer by the end of the relevant week) will receive statutory neonatal care pay.
Employee Protections
Employees who take the neonatal care leave will have the same employment protections as those associated with other forms of family related leave (such as maternity or paternity leave). These include protection from dismissal or detriment as a result of taking the leave
Employer Best Practice
- Policy Updates – Review and update company policies to reflect the new entitlements
- Payroll Adjustments – Ensure payroll systems can accommodate Statutory Neonatal Care Pay calculations. Assess eligibility, including continuity of service and minimum earnings thresholds
- Employee Support – Provide guidance and support to employees who may need to take neonatal leave. Establish clear processes for requesting and managing neonatal care leave
- Training and Awareness – Train managers to understand the new rights and handle requests appropriately
- Supportive Culture – nurture a supportive workplace culture that acknowledges the challenges faced by parents with babies in neonatal care
Updating your policies
All employers should now update their policies and employee handbooks in line with these new rights. For help updating your policies, contact us for a quote today.
For a review of your HR documents including policies and contracts of employment with a list of actionable recommendations to help you stay compliant, request your free HR audit with one of our experienced HR consultants.
