Understanding Neonatal Care Leave & Pay 2025 

Starting 6 April 2025, employers will need to prepare for a major shift in family-friendly workplace policies. The introduction of Neonatal Care Leave offers an additional statutory entitlement for parents whose babies require neonatal care. This development is a vital step to support families during challenging times, but it comes with significant responsibilities for employers. 

This guide will help you understand the key details of Neonatal Care Leave and Pay, its implications for employers, and how to prepare your business for these changes. 

What is Neonatal Care Leave? 

Neonatal Care Leave is a new statutory right giving eligible employees up to 12 weeks of paid leave if their baby requires neonatal care within the first 28 days after birth. The leave is in addition to existing entitlements such as maternity, paternity, adoption, and shared parental leave. 

The Neonatal Care (Leave and Pay) Act 2023 aims to alleviate the financial burden and work-related stress for parents with newborns in specialised medical care. The government estimates that nearly 60,000 parents annually will benefit from this enhanced support. 

Key Features of Neonatal Care Leave 

Neonatal leave is available to employees from the first day of their employment, regardless of the length of their service. 

Eligibility: It applies to biological parents, adoptive parents, intended parents through surrogacy, partners of the mother, and those responsible for the child’s upbringing. 

Qualifying Criteria: The baby must require neonatal care within the first 28 days after birth and remain in care for at least seven consecutive days. 

Duration: Employees can take up to 12 weeks of leave in full-week blocks, in addition to their existing statutory leave rights. 

Flexibility: The leave can be used alongside or after other types of statutory leave (maternity, paternity, or adoption leave) and must be taken within 68 weeks of the child’s birth. 

Neonatal Statutory Pay 

Alongside the leave entitlement, eligible employees will also be entitled to Statutory Neonatal Care Pay (SNCP). 

Eligibility for Statutory Pay 

For employees to qualify for SNCP, they must meet the following criteria:

At least 26 weeks of continuous service with the employer by the 15th week before the baby’s due date. 

Earnings at or above the lower earnings limit (£125 per week from April 2025). 

Pay Rate 

The statutory pay rate will be the lower of £187.18 per week or 90% of the employee’s average weekly earnings. This mirrors the pay structure for other statutory leave entitlements, such as Statutory Maternity Pay. 

Day-to-Day Implementation 

Dividing Leave into Tiers 

Neonatal Care Leave is classified into two tiers based on when it is taken:

Tier 1 (During Neonatal Care): Can be taken in non-continuous blocks of at least one week. Employees must provide at least 15 days’ notice for each block of leave. 

Tier 2 (After Neonatal Care Ends): Must be taken in a single continuous block. Employees are required to give 28 days’ notice. 

Employers may waive these notice periods through mutual agreement if special circumstances arise. 

Maintaining Benefits and Job Security 

Employees remain entitled to all contractual benefits (apart from pay) during Neonatal Care Leave. They are guaranteed a return to their previous role unless they have taken over 26 weeks of combined statutory leave. If so, they must be offered a suitable alternative role. Employers are also required to prioritise redeployment for qualifying employees with enhanced redundancy protection for 18 months after the child’s birth or adoption. 

The Employer’s Role in Managing Neonatal Care Leave 

The introduction of Neonatal Care Leave requires employers to make significant adjustments to their existing policies, day-to-day processes, and workforce planning strategies. 

1. Update HR Policies 

Employers should implement a comprehensive Neonatal Leave and Pay Policy that meets the new statutory requirements. This policy should provide clarity on:

• Eligibility criteria. 
• The application process for employees. 
• Supporting documentation needed for leave requests. 

2. Integration with Existing Policies 

Ensure your Neonatal Care Leave Policy integrates seamlessly with existing family-friendly policies, such as maternity and paternity leave. This avoids conflicts between overlapping entitlements and ensures employees understand how their various rights interact. 

3. Workforce Planning 

Prepare for potential disruptions as employees may take extended periods of absence when combining maternity, paternity, or adoption leave with Neonatal Care Leave. Advanced workforce planning is crucial to maintain productivity and manage temporary staffing gaps. 

4. Training for Managers 

Train line managers and HR staff to handle leave requests sensitively and in line with legal requirements. Confidence in managing these situations is critical to fostering trust and transparency within your organisation. 

5. Enhance Employee Support 

Consider offering enhanced pay or greater flexibility in how Neonatal Care Leave is taken. This will not only boost employee morale but also position your company as an employee-first organisation. 

Why This Matters 

The introduction of Neonatal Care Leave demonstrates a legislative shift toward recognising and addressing the unique challenges parents face when their newborn requires specialised care. For employers, it represents an opportunity to strengthen company culture, support employee wellbeing, and align HR policies with modern expectations for work-life balance. 

By being proactive in your approach to these new legal requirements, you not only ensure compliance but also show your employees that your organisation is empathetic and forward-thinking.