With April 2025 fast approaching, employers must prepare for the introduction of statutory neonatal care leave and pay, a new entitlement under the Neonatal Care (Leave and Pay) Act 2023. This legislation provides eligible employees with up to 12 weeks of additional leave if their baby requires neonatal care, offering vital support to parents during what can be a distressing and emotional time.
Who is Eligible?
Neonatal care leave is a day-one employment right, meaning no minimum service period is required. Employees must have a qualifying relationship with the child, such as being a parent, adopter, or partner of the child’s mother or parent. Additionally, the baby must require at least seven consecutive days of neonatal care within the first 28 days after birth.
How Neonatal Care Leave Works
The new legislation introduces a two-tier system, allowing employees to take leave in different ways:
● Tier 1: Leave can be taken flexibly in weekly blocks while the baby is still receiving neonatal care. This provides parents with greater flexibility to manage their time during hospital stays.
● Tier 2: Leave must be taken in one continuous block and is available for up to 68 weeks after birth. This ensures parents still have access to neonatal leave even after the initial hospital stay, providing continued support.
Employees are entitled to one week of leave for every full week their child spends in neonatal care, up to a maximum of 12 weeks. The leave must be taken before the child’s first birthday. While employees are required to give notice before taking leave, the legislation encourages flexibility for urgent situations.
Statutory Neonatal Care Pay
Employees who meet the 26-week service requirement before the relevant week and earn above the lower earnings limit will be entitled to statutory neonatal care pay. The rate will align with other statutory payments, starting at £187.18 per week from April 2025 or 90% of their average weekly earnings, whichever is lower.
How Employers Should Prepare
To comply with the new regulations, employers should start preparing now. Key actions include:
● Updating HR policies to include neonatal care leave and pay entitlements.
● Training managers on how to handle leave requests and support affected employees.
● Adjusting payroll systems to accommodate statutory neonatal care pay.
● Reviewing flexible working policies to ensure they align with the needs of employees taking neonatal leave.
As this new entitlement comes into effect from April 2025, businesses should ensure their payroll, policies, and employee support systems are updated well in advance.
Need help updating your HR policies? Our team is here to support you. Contact us today to ensure your business is fully prepared.
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