The Government has officially confirmed that the Neonatal Care (Leave and Pay) Act 2023 will come into effect on 6th April 2025. This legislation is a vital step forward in supporting parents whose newborns require extended hospital care in those critical early days. While the Act was initially passed under the previous government, some key details are still being finalised and will be confirmed once the accompanying Statutory Regulations have been approved by Parliament in the coming months.

What we know so far:

  • Eligibility: Parents with a baby up to 28 days old who is admitted into neonatal care in hospital for a continuous stay of 7 full days or longer will qualify. 
  • Day-One Right to Leave: Employees will have an immediate right to neonatal leave from the first day of employment.
  • Statutory Pay Requirements: The right to statutory pay will require 26 weeks’ service and earnings of at least the Lower Earnings Limit in force at the time the leave is taken
  • Leave Entitlement: Up to12 weeks leave in total, in addition to any maternity/paternity leave they are already entitled to.
  • Notice Requirement: The employee must give notice in writing of when they wish to take the leave.
  • Flexibility in Timing: The leave can be taken at the end of a period of statutory maternity, even if the child needed neonatal care before this. This is because statutory maternity leave can’t be stopped and started.

What’s still to be confirmed?

  • The Rate of Statutory Neonatal Care Pay: Although it is expected to be in line with other statutory payments such as Statutory Maternity Pay and Statutory Paternity Pay.
  • Notice Period Requirements: How much notice the employee is required to give of their intention to take the leave
  • Timeframe for Taking Leave: Although the Act states an absolute limit of 68 weeks, the regulations may amend this.
  • Special Circumstances: What happens if an employee has more than one child who requires neonatal care at the same time, e.g. twins, or if the child requires the care on more than one occasion in the first 28 days.

How We Can Help You Prepare

At MAD-HR, we know that legislative changes like this can create uncertainty for employers. Ensuring your policies, contracts, and HR processes align with the new rules is essential to maintaining compliance and providing the right support for your team. With April fast approaching, now is the time to start preparing. Contact us today, and let us help you stay ahead of the curve. we’ll continue to monitor the progress of the regulations and will keep you updated as more details emerge. 

Frequently Asked Questions

Useful questions and answers about “Neonatal Care Leave and Pay: What Employers Need to Know”

When does the Neonatal Care (Leave and Pay) Act come into effect?

The Act will come into effect on 6th April 2025, giving employers time to update their policies and prepare for compliance.

Who is eligible for neonatal care leave?

Parents of babies up to 28 days old admitted to hospital for 7 continuous days or more will qualify for neonatal care leave.

Is neonatal leave available from the first day of employment?

Yes, the right to neonatal leave is a day-one right, meaning employees can take leave immediately, regardless of how long they’ve been employed.

How much neonatal leave are employees entitled to?

Employees can take up to 12 weeks of neonatal care leave, which is in addition to existing maternity or paternity leave entitlements.

Do employees get paid during neonatal care leave?

Employees will be entitled to statutory neonatal care pay if they’ve been employed for 26 weeks and meet the Lower Earnings Limit. The exact pay rate is expected to align with other statutory payments but will be confirmed once regulations are finalised.

What should employers do to prepare for the new law?

Employers should review HR policies, update employment contracts, and ensure managers are trained to handle neonatal leave requests. Learn how MAD-HR can help you stay compliant.