The UK government has announced a transformative update for working parents. From 6 April 2025, the Neonatal Care (Leave and Pay) Act 2023 will introduce Neonatal Care Leave (NCL) as a day-one entitlement and Statutory Neonatal Care Pay (NCP) for eligible employees.

Currently, parents of newborn babies needing neonatal care rely on the discretion of their employers or general leave provisions like maternity or paternity leave in determining the time off. These options often fall short of addressing the prolonged hospital stays required for neonatal care. The new act bridges this gap by offering tailored leave and pay provisions.

Key Provisions

  • Neonatal Care Leave (NCL):  This leave will be available to all employees from day one and will allow parents to take up to 12 weeks of leave for babies admitted to neonatal care.  Neonatal care is defined in the regulations as medical care received in a hospital or medical care in another place under the direction of a consultant and includes ongoing monitoring and healthcare visits after the child ceases to be an inpatient in hospital or palliative or end of life care. The leave can be taken in one-week blocks and must be used within 68 weeks of the child’s birth. If the leave is to be taken in the “tier one period” (i.e. Where they are in neonatal care and for one week after they are discharged) it can be taken in non-continuous blocks of a minimum of one week. During the remainder of the 68-week period the leave can be taken in one continuous block (the tier 2 period). There are notice provisions which apply (although notice can be dispensed with).
  • Statutory Neonatal Care Pay (NCP): Eligible employees who meet continuity of service and minimum earnings criteria can receive NCP, providing financial support during their leave.

Protecting Employee Rights

Parents taking NCL will have the same protections as those on maternity or paternity leave, safeguarding against dismissal or other detriments. In addition, the regulations suggest that those who have taken 6 continuous weeks of neonatal leave will be entitled to extended redundancy protection rights.

Implementation Timeline

The act’s implementation will be guided by two regulatory frameworks:

  1. Neonatal Care Leave and Miscellaneous Amendments Regulations 2025: Detailing eligibility, application processes, and employment protections.
  2. Statutory Neonatal Care Pay (General) Regulations 2025: Setting out payment criteria, rates, and administrative procedures.

Both regulations are expected to come into effect on 6 April 2025, subject to parliamentary approval. Detailed guidance will follow to help employers and employees navigate the new rules.

Preparing for Change: What Employers Should Do

To ensure compliance, employers should:

  • Update Policies: Reflect the new entitlements in company handbooks and policies.
  • Adjust Payroll Systems: Incorporate NCP calculations and streamline processes to meet statutory requirements.
  • Support Employees: Develop clear procedures for managing NCL requests and offer guidance to affected parents.
  • Train Managers: Equip HR teams and managers with knowledge about the new entitlements and employee protections.

The Neonatal Care (Leave and Pay) Act 2023 is hailed as a significant step toward supporting working parents during a challenging time. Employers should act now to review their policies and procedures with this upcoming change.

Thank you to Salma Khatab for her help in preparing this blog post.