The Government has confirmed that from 6 April 2025, eligible employees will gain a statutory right to neonatal care leave and pay.
This long-awaited reform, introduced under the Neonatal Care (Leave and Pay) Act 2023 (the Act), aims to support parents during an intensely challenging period.
For employers, preparing for this change will ensure compliance and help maintain positive relationships with staff. There are a couple of key differences to other forms of statutory leave so employers will need to be aware of these.
The new entitlement at a glance
Neonatal care leave will allow eligible employees to take up to 12 weeks of leave (in addition to existing maternity, paternity, adoption, or shared parental leave) if their baby requires neonatal care. The entitlement applies where:
- The baby is admitted into hospital within 28 days of birth.
- The hospital stay lasts 7 full days or longer.
This leave will be a day-one right, meaning employees can access it from the start of their employment.
Statutory neonatal care pay (subject to eligibility criteria) will also be available, similar in structure of other family-related pay schemes.
It is likely that employers will need to deal with this in respect of fathers or the mother’s partner initially as they are likely to take this whilst the baby remains in neonatal care or shortly after where the mother is likely to add it on to the end of their maternity leave.
What will these new rights mean for employers?
Consistency in workforce planning
The statutory framework offers clarity for managing neonatal leave, reducing reliance on informal arrangements such as unpaid leave, annual leave requests or sickness absence.
Boosting staff retention
Demonstrating support during difficult times can promote loyalty, helping retain employees who value employers with compassionate policies.
Mitigating legal exposure
Non-compliance risks tribunal claims, including discrimination allegations, unfair dismissal claims or automatic unfair dismissal claims. Proactive updates to policies and training will be vital. Employers will need to get to grips with the concept of Tier 1 leave and Tier 2 leave and the requirements of each.
A tier 1 period of leave means the period beginning with the day the baby starts receiving neonatal care and ending on the seventh day after the day the baby stops receiving neonatal care. A tier 2 period means any period of time which is not a tier 1 period but where an employee is entitled to take Neonatal Care Leave.
Timeline and steps for preparation
While the rules take effect in April 2025, employers should begin preparations now by:
- Revising policies – Incorporate neonatal care leave into existing family-friendly policies, or prepare a separate neonatal care leave policy outlining eligibility, notice periods, and pay structures.
- Training HR teams and managers – Equip staff to handle requests with sensitivity and consistency, avoiding missteps during emotionally charged situations.
- Adjusting payroll systems – Ensure systems can accommodate statutory neonatal care pay (aligned with rates for other family-related pay) and track leave accurately.
Supporting staff while managing operations
With an estimated 60,000 parents benefiting annually, this reform will impact many workplaces. Employers should balance empathy with practical needs by:
- Planning cover – Cross-train teams or consider temporary staffing to manage absences.
- Respecting privacy – Handle medical information confidentially to protect employee dignity.
- Promoting inclusivity – Normalise the use of neonatal leave to reduce stigma and encourage uptake.
As Employment Rights Minister Justin Madders emphasised, this entitlement allows parents to focus on their newborn “without worrying about keeping their job”.
Future developments
This reform sits alongside other updates to family-friendly rights, such as upcoming changes to flexible working and carer’s leave.
Staying informed and proactive will help employers adapt smoothly and position themselves as supportive workplaces.
For further guidance on this upcoming update, contact our employment law team today.