Neonatal care leave and pay – the new law

The Neonatal care leave and pay act was introduced by the previous government and received Royal Assent on 24 May 2023. It has now been confirmed that, subject to parliamentary approval, this act will come into force on 6 April 2025.

The Act introduces the right for parents to take up to 12 weeks’ leave, and for some pay, in addition to their existing family leave entitlements, such as those for maternity, adoption and paternity leave. 

Find out more – The Neonatal Care (Leave and Pay) Act 2023

This leave is now offered to parents with a baby who is required to undergo neonatal care. The intention of this act is to provide support to parents going through such a difficult situation, allowing them to take extra leave to spend time with their baby in addition to their other entitlements.

What is the entitlement 

Neonatal care leave and pay will be available to parents if their child receives neonatal care before they are 28 days old and the care lasts for at least 7 days. Neonatal Care Leave must be taken within 68 weeks of the child’s birth and may be added on to the end of another period of statutory leave, such as maternity leave.

Unpaid leave of up to 12 weeks is available to all employees with no requirement for a minimum qualifying period of service. Employees with 26 weeks’ continuous service and earnings on average of at least £123 a week at the relevant date will be entitled to Statutory Neonatal Care Pay, paid at the same rate as statutory paternity pay. 

Parents who take Neonatal Care Leave are entitled to the same protections that are offered under the maternity, adoption, paternity or shared parental leave provisions. This includes the right to return to the same or another suitable role, protection from redundancy during and for a period after taking Neonatal Care Leave, as well as protection from detriment and unfair dismissal.

What this means for employers

Employers will of course need to be aware of the rights of their staff under this new entitlement, and should consider the following;

  • Naturally, the new entitlement will mean that the employee’s agreed period of leave under maternity or paternity (or otherwise) provisions will be extended by up to 12 weeks. The employee will not be able to return to work and resume maternity leave, for example, but will need to add this entitlement to their existing leave. This will also mean that any period of enhanced protection from redundancy will be extended by the same period. 
  • An employee requesting Neonatal Care Leave means that the employee, or their partner, has likely suffered a traumatic birth. The potential effects of long-term conditions should be considered before any future capability or sickness absence procedures are embarked upon, and such matters will need to be handled sensitively. 
  • The notice that an employee must give for Neonatal Care Leave has not yet been specified and the expectation will be that employers are sensitive to the difficult circumstances that the employee is facing. Policies should therefore be clear on what is expected and staff should receive adequate training, to avoid potential employment claims. 

How Moore Barlow can help

This Act will be introduced shortly, so proactive action is encouraged on behalf of employers. For assistance in preparing for the introduction of this Act in April, please do not hesitate to contact our Employment law team.