The Neonatal Care Leave and Pay Act 2023 will come into force on 6 April 2025. The Conservative government had promised to implement this. It will allow up to twelve weeks paid leave to eligible employees who have had a baby subsequently receiving neonatal care and will be a day one right with a new employer. The government have stated that around 60,000 new parents may benefit.
- Neonatal Care Leave and Miscellaneous Amendments Regulations 2025: These regulations detail the specific provisions for neonatal care leave, including eligibility criteria, the process for requesting leave, and the protections afforded to employees during their leave period. They also amend existing employment legislation to integrate the new leave entitlements seamlessly.
- Statutory Neonatal Care Pay (General) Regulations 2025: These regulations outline the conditions under which eligible employees can receive statutory neonatal care pay, specifying the qualifying criteria, the rate of pay, and the duration for which the pay is available. They provide guidance on the administrative processes employers must follow to implement and manage these payments.
The Neonatal Care Leave and Pay Act 2023 will allow new parents to focus on their new baby. At the moment many parents have to return to work whilst their baby is still sick which will be a huge dilemma and cause a lot of stress. This new law will apply to parents of babies who are admitted into neonatal care up to 28 days old and who have a continuous stay in hospital of seven full days or longer for:
*medical care
* palliative care
*outreach care where care is provided under the guidance of a consultant doctor and includes ongoing monitoring by and visits to the baby from healthcare professionals arranged by the hospital
The Neonatal Care Leave and Pay Act will allow eligible parents to take up to twelve weeks of leave (and, if eligible, pay) on top of any other leave they may be entitled to, including maternity and paternity leave. Neonatal care leave can be taken in blocks of one week and must taken within the first 68 weeks of the baby’s birth. It could therefore be used when maternity leave, paternity leave and shared parental leave come to an end.
To be entitled to take the neonatal care leave, employees must be taking it to care for the baby, give notice and be either the child’s parent, intended parent, or the partner of the child’s mother at the date of birth.
In cases of adoption they must be the baby’s adopter, prospective adopter, or the partner of either at the date the child is placed, or in the case of an overseas adoption, the date the child enters the UK.
Neonatal care pay is subject to continuous service eligibility and a minimum earnings threshold. Neonatal care pay is paid at either the statutory flat rate of £187.18 per week for 2025/2026, or 90% of average earnings calculated over a set reference period, whichever is lower whilst absent from work.
The protections during and after neonatal care leave are the same as for other statutory family related leave types, including protections against redundancy, dismissal, detriment and the right to return to the same or a similar job on no less favourable terms and conditions after the leave.
Detailed guidance from the government is awaited to clarify key aspects such as eligibility criteria, how and when employees can apply for leave and pay, notice and evidence requirements, employer obligations, and the medical conditions qualifying for neonatal care leave This will help ensure both employers and employees fully understand their rights and responsibilities under the new law.
In addition the Department for Business and Trade is also expected to issue practical guidance for employers and employees to cover topics such as handling leave requests, making payroll adjustments for statutory neonatal pay, and understanding the rights and protections available to employees. Employers should also receive instructions from HMRC on how to reclaim statutory neonatal pay through the usual systems, similar to other statutory payments like maternity pay.
The new legislation will pose challenges to employers who will need to update HR policies and the payroll system. Policies should reflect the new law and there should be processes in place to deal with employee requests with management and HR training provided. Business owners and managers should understand the new rights and how they are applied. The workforce should be informed about the implementation of any new or changed policies so they are fully aware of their rights. If you need a neonatal care leave and pay policy please contact http://www.sjbealehrconsult.co.uk
The full details of this new family friendly law can be found at https://www.legislation.gov.uk/ukpga/2023/20/enacted