What do employers need to know?
The Neonatal Care (Leave and Pay) Act 2023 came into effect on 6 April 2025. It entitles mothers, birthing parents, fathers and non-birthing parents to a “day one” right to leave from work if their baby receives neonatal care for more than 7 continuous days before the baby is 28 days old. They can take one week’s leave for every week that their baby receives continuous hospital care, up to a maximum of 12 weeks. Their employment rights are protected during this time.
Employees that have at least 26 weeks’ continuous service and earn on average at least £125 per week are entitled to receive Statutory Neonatal Pay for the duration of their Neonatal Care Leaveup to a maximum of 12 weeks. Employers can reclaim a percentage of the statutory pay by reducing their National Insurance payments to HMRC.
The leave must be taken within 68 weeks of the baby’s birthday. In the case of the mother or birthing parent, this will be after the period of Statutory Maternity Leave or after a period of Adoption Leave is complete. For fathers, non-birthing parents and partners who start a period of Neonatal Care Leave that will overlap with a planned period of Paternity Leave, the Neonatal Care Leave can be paused and continued after Paternity Leave is complete.
Employees should give notice of their intention to take Neonatal Care Leave. If their baby is still receiving neonatal care, and up to 7 days afterwards (Tier 1), they should contact you before they are due to start work on the first day that they intend to take leave, or as soon as they are able. If their baby has been discharged from hospital for at least 7 days (Tier 2), they must give 15 days’ notice to take a week-long period of leave, and 28 days’ notice if they’re taking two or more weeks of leave. You may want to waive these notice periods for the employee.