neonatal care leave

Neonatal Care Leave and Pay: New Right for Parents

Neonatal Care Leave and Pay: New Right for Parents

A new statutory entitlement is due to come into force on 6th April 2025 under the Neonatal Care (Leave and Pay) Act 2023. This will provide employed parents with the day-one right of up to 12 weeks of leave if their babies are admitted to neonatal care. This leave entitlement will be on top of other family leave entitlements such as maternity, paternity and shared parental leave. In addition, if eligible, parents will also be entitled to up to 12 weeks of statutory pay.

Subject to Parliamentary agreement, the new entitlement will apply to parents with babies born on or after 6th April 2025.

Eligibility for leave

This will be a day-one right for a wide range of parents including adoptive parents, parents who are fostering to adopt, and the intended parents in surrogacy arrangements.

This leave applies to babies admitted within the first 28 days of life and have a continuous stay in hospital for at least seven days.

Parents can take a minimum of one week, and a maximum of 12 weeks of leave. This will depend on how long their baby is in neonatal care.

Eligibility for pay

Some parents may also be eligible for up to 12 weeks of Statutory Neonatal Care Pay. To qualify for this pay, parents must:

  • Have worked for their employer for at least 26 weeks
  • Earn on average at least £125 before tax from April 2025

Leave and Pay Tiers

Parents have two options when taking Neonatal Care Leave and Pay (Tier 1 or Tier 2) and must give the appropriate notice. The type and length of notice will depend on what tier of leave the employee is planning to take.

Tier 1

This is the period when the baby is still receiving neonatal care and includes one week after the care has ended. Leave can be taken flexibly, in multiple blocks of at least one week.

When taking Neonatal Care Leave, the employee should inform their employer before they would be due to start work on the first day of absence, or as soon as possible following admission. Notice for Tier 1 leave does not need to be in written form.

Parents eligible for Neonatal Care Pay should provide written notice for Tier 1 Neonatal Care Pay within 28 days, beginning from the first day of the week in which it is being claimed.

Tier 2

This is the period outside of the period of Tier 1 and before the end of 68 weeks from the date of the baby’s birth. This type of leave must be taken in one continuous block.

Notice of at least 15 days is required for an employee taking one week of leave. If the employee plans to take two or more weeks of leave, they will need to provide notice of at least 28 days. Notice for Tier 2 leave needs to be in written form.

Eligible parents claiming Tier 2 Neonatal Care Pay should give notice of at least 15 days in advance to claim pay for one week’s leave. To claim pay for two or more weeks of leave, notice of 28 days is required.

How to prepare

  • Review and update parental leave policies to reflect the changes.
  • Train managers on this new statutory right and how to handle requests with sensitivity.
  • Adjust payroll systems so that they accommodate Statutory Neonatal Care Pay calculations.
  • Create a supportive culture by providing guidance and support to employees who may need to take neonatal care.
  • Ensure there is a clear process in place for requesting and managing neonatal care leave.

The final details and guidance are still to be confirmed by the government. Once confirmed, we will provide a further update.

To find out more information or to discuss the new right of Neonatal Care Leave and Pay, please get in contact with our team of experts.

T: 0330 107 1037

E: contact@hpc.uk.com

LinkedIn: High Performance Consultancy

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