On 6 April 2025, the Neonatal Care (Leave and Pay) Act 2023 will come into effect, giving a new statutory right which will support working parents. For many, the birth of a child will be a joyous occasion. However, for those whose newborns require additional hospital care, it will be a very distressing and uncertain time.
The new statutory right aims to help parents who find themselves in this unfortunate situation and allow parents to spend time with their child meaning that parents will not need to make a choice between their job and being by their child’s side when it matters most.
For employers, this change represents both a legal obligation to be aware of but also presents an opportunity to foster a workplace culture that truly values employee well-being, with some employers having introduced neonatal leave and pay ahead of the statutory schemes implementation.
What Does the New Legislation Mean?
Parents of babies admitted to neonatal care (within the first 28 days of life for a minimum of seven continuous days) will be entitled to up to 12 weeks of additional leave. Crucially, this is a day-one right, meaning all eligible employees, regardless of their length of service, can access neonatal leave.
In addition, those who have continuity of service of 26 weeks and meet the minimum earnings threshold of average earnings over £125 per week (from April 2025), will be entitled to Statutory Neonatal Care Pay (SNCP)—providing financial security during an incredibly difficult time.
Importantly, this leave does not replace existing entitlements like maternity, paternity, or shared parental leave—it is a crucial addition, reflecting the increasing recognition that families facing neonatal challenges need more tailored support.
This leave can be taken while the baby is in receipt of the neonatal care, at the end of other family leave being taken or within 68 weeks of the baby’s birth.
Notice provisions apply and there will be two differing tiers:
- Tier one – no advance notice is required and the leave can be taken as non-consecutive weeks; or
- Tier two – which requires at least 15 days’ notice and can only be taken consecutively.
What Employers Need to Know
Employers should act now to ensure compliance and, more importantly, to support employees effectively.
Here are the key steps employers should take ahead of April 2025:
- Update Policies & Procedures
- Review and revise family friendly policies to incorporate neonatal leave entitlements.
- Ensure training is given to line managers and HR teams understand the new rules and how they will work.
- Establish a process for employees to request neonatal leave.
- Adjust Payroll Systems
- Prepare to process Statutory Neonatal Care Pay, ensuring payroll teams can manage eligibility requirements and payments.
- Consider whether your organisation will go beyond the statutory minimum, offering enhanced neonatal leave benefits.
- Communicate the Changes Clearly
- Employees may not be aware of these new rights, so proactive communication is key.
- Consider providing guidance and FAQs to ensure parents feel confident in accessing their entitlements.
- Consideration may also be given to implementing additional resources, such as employee assistance programmes, mental health support, or flexible return-to-work arrangements.
With April 2025 fast approaching, now is the time to prepare. At Ellisons Solicitors, we are working with employers to navigate these changes, ensuring both legal compliance and the implementation of best practices that support employees in their time of need.
If you’d like to discuss what these changes mean for your business, get in touch with the Ellisons Employment Team.
