Neonatal Care Leave: What Employers Need to Know

Neonatal Care Leave: What Employers Need to Know

Following widespread speculation and debate, the Neonatal Care (Leave and Pay) Act 2023 officially came into force in the UK on 6 April 2025. The legislation is designed to support parents whose babies require neonatal care shortly after birth and is now a statutory obligation all employers must comply with.

Who is entitled to neonatal care leave?

Neonatal care leave applies to those with parental responsibility for a baby admitted to neonatal care within the first 28 days of life. This includes biological and adoptive parents, as well as the partners of the baby’s mother. To qualify, the baby must require at least seven consecutive full days of neonatal hospital care.

Entitlement from day one

Under the new law, employees (excluding workers and self-employed individuals) are now legally entitled to up to 12 weeks’ neonatal care leave from the very start of their employment, provided they meet eligibility criteria. This ‘day one’ right ensures parents can immediately access time off to be with their newborn receiving hospital care.

Previously, parents in similar situations often had no choice but to rely on their annual leave or request time off informally. In many cases, one or both parents returned to work while their baby was still in neonatal care – a deeply challenging situation that the new law aims to eliminate.

Topping up existing leave

Neonatal care leave can be used to effectively ‘top up’ maternity/paternity leave arrangements, providing parents with even more quality time with their babies without having to worry about using up all of their annual leave or rushing back to work for fear of potentially losing their job.

Who qualifies for neonatal care pay?

To receive statutory neonatal pay, employees must have at least 26 weeks of continuous service and earn a minimum of £123 per week. This pay is available for up to 12 weeks, provided the leave is taken within 68 weeks from the birth of the child.

This element of the legislation provides a vital financial safety net, but also introduces further obligations for employers around payroll processing and leave tracking.

The implications for employers 

• Cost and resource considerations – With more parents potentially taking up to 12 additional weeks of leave, employers may face increased staffing costs to cover absences, especially in smaller teams.
• Administrative and policy updates – Employers should update all of their relevant policies and procedures, making sure they clearly and adequately set out their new neonatal care leave duties. Neonatal leave guidance should sit alongside existing parental leave policies and clearly outline the new entitlements and processes for both employees and managers.
• Legal risk and return-to-work obligations– Employers must also be mindful of the legal protection employees have while on neonatal care leave. Staff returning after up to 12 weeks are entitled to return to their role. If this is no longer feasible, an equivalent position or priority consideration for other suitable roles must be offered. Additionally, employees are protected from redundancy, dismissal, or any detriment due to taking neonatal care leave—failure to comply could result in legal action.

Creating a new standard for family-friendly workplaces

Employers familiar with previous legislation such as Shared Parental Leave or Carer’s Leave may find the transition smoother. However, this latest development demands immediate attention for those who are yet to get started.

Proactive employers who have already embedded these changes into their workplace policies signal a clear commitment to employee wellbeing and compliance. For others, the time to act is now.

What employers should do now

• Review and revise internal HR policies to reflect the Neonatal Care (Leave and Pay) Act 2023.
• Train managers and HR staff on the new entitlements and obligations.
• Ensure payroll systems can accommodate statutory neonatal pay accurately.
• Prepare for staffing adjustments during periods of extended leave.
• Communicate clearly with employees about their rights and the process to request neonatal care leave.

How we can help

Our expert employment solicitors are on hand to help you navigate this new legislation with confidence. Whether you need assistance updating your policies, managing requests, or avoiding potential pitfalls, we offer practical, commercial advice tailored to your business.