Neonatal care: new entitlement for employed parents

From 6 April 2025, there is a new statutory right to neonatal care leave and pay for employed parents. The new law applies in England, Scotland and Wales, but not in Northern Ireland.

The move is expected to benefit around 60,000 parents, helping them face the emotional and practical challenges of having a baby in neonatal care, without having to work or use up existing leave.

There are two elements to the new entitlement: neonatal care leave (NCL) which gives additional time off work as a day-one employment right; and neonatal care pay (NCP), for which a minimum period of employment and a minimum earnings test apply.

Conditions

The entitlement is available:

• to parents of a baby born on or after 6 April 2025
• where the baby is admitted into neonatal care up to the age of 28 days, and has a continuous stay of seven full days or more.

‘Parents’ in this context include adoptive parents, parents fostering to adopt, and the intended parents in surrogacy arrangements. The partner of the baby’s mother is also eligible. Partner here is defined as someone living with the mother or adopter in a long-term family relationship, but who is not related to them. They must also expect to have responsibility to raise the child.

Neonatal care is defined as medical care in hospital; medical care received elsewhere on discharge from hospital, given under the direction of a consultant; and palliative or end of life care.

Leave

Parents can take anywhere from between one to 12 weeks of leave, depending on how long their baby is in neonatal care. Leave must be taken in full weeks. Employers should be aware that each parent has their own entitlement to leave: it doesn’t have to be shared between partners. Note also that NCL is in addition to any right to maternity, paternity or shared parental leave.

Leave must be taken within 68 weeks of the birth. Given that a parent qualifying for NCL is already likely to be on some type of family leave, it is likely that NCL will be added to the end of this.

Pay

To qualify for NCP, someone must have worked for at least 26 weeks for their employer, ending with the relevant week. They must also earn over the Lower Earnings Limit, £125 per week from April 2025. Eligible employees will be entitled to NCP for up to 12 weeks.

Other requirements

Leave is referred to as being in one of two categories: Tier 1 and Tier 2. Tier 1 leave is taken when the child is still receiving neonatal care, and up to a week after discharge, and can be taken in non-continuous blocks, of at least a week at a time. Tier 2 leave is taken at any other time, up to the end of 68 weeks from the child’s birth, and must be taken in a continuous block.

The notice periods for each Tier are different, and only for Tier 2 must an employee give notice in writing. As well as giving the employer notice, the employee also needs to provide certain information to the employer, such as the child’s date of birth.

What employers need to do

Employers will need to update their policies, and make sure that employees are aware of the new rules. Payroll systems will also need adjustment.

We are always on hand to advise on the small print of legal change. Please do contact us with any questions you may have.