Neonatal care leave and pay: new rights for parents and employers

As of 6 April 2025, the UK government has introduced a new statutory entitlement aimed at supporting working parents whose newborns require specialist medical care shortly after birth. This new provision, known as Statutory Neonatal Care Leave (NCL) and Statutory Neonatal Care Pay (SNCP), is a significant development in employment law and family support policy. The Government have now published the employers’ technical guide to neonatal care leave and pay, which is a helpful tool to assist organisations navigate this potentially complex new statutory right.

Neonatal Care Leave allows eligible employees to take additional time off work to care for their baby during or following a period of neonatal care. This entitlement is designed to ease the pressure on families during what is often a highly stressful and emotionally challenging time. Importantly, this leave is separate from and in addition to existing family-related leave entitlements such as maternity, paternity, and shared parental leave.

Eligibility and duration: To qualify for Neonatal Care Leave, the baby must have been admitted to neonatal care within the first 28 days of life and must have remained in care for a minimum of seven continuous days. The leave itself is a day-one right, meaning employees are eligible regardless of how long they have been employed. However, to receive Statutory Neonatal Care Pay, employees must have at least 26 weeks of continuous service by a specific qualifying week, and earn above the Lower Earnings Limit at that time.

The duration of leave is calculated based on the length of the baby’s stay in neonatal care, with one week of leave granted for every seven days spent in care, up to a maximum of 12 weeks. Parents have up to 68 weeks from the child’s birth to take this leave, allowing for flexibility in how and when it is used.

Statutory Neonatal Pay: The rate of SNCP aligns with other statutory family-related payments and is currently set at £187.18 per week or 90% of the employee’s average weekly earnings, whichever is lower (as of April 2025).

Unlike NCL, which is available from day one of employment, SNCP is not a day-one right-employees can take the leave regardless of service length, but they must meet the continuous service requirement to receive statutory pay. Employers are generally able to reclaim specific proportions of SNCP payments from HMRC.

Employees must also provide appropriate notice before taking leave. The notice requirements vary depending on the timing of the leave: if the leave is taken while the baby is still receiving neonatal care or during the first week after the baby leaves neonatal care (referred to as Tier 1), shorter notice is acceptable. If the leave is taken after the baby has been discharged from care (Tier 2), more formal notice is required. In urgent situations, it is advised that notice should be given as soon as reasonably practicable.

Interaction with other leave and rights: Neonatal Care Leave is designed to complement existing family-related leave entitlements, such as maternity, paternity, adoption, and shared parental leave. However, it cannot be taken concurrently with maternity or adoption leave, as those types of leave cannot be paused. In practice, this means that NCL will typically be taken after maternity or adoption leave has ended. Paternity leave, on the other hand, can be taken either before or after NCL, depending on the circumstances. This layered approach to leave entitlements allows parents to structure their time off in a way that best supports their family’s needs.

Benefits of the New Entitlement

Support for families: This new entitlement is a compassionate response to the realities faced by many families. Neonatal care can be a deeply distressing experience, and the ability to take protected leave during this time allows parents to focus on their child’s health and recovery without the added pressure of returning to work prematurely. It also promotes better outcomes for both parents and children by encouraging bonding and emotional support during a vulnerable period.

Legal and workplace gains: For employers, the implementation of NCL offers a valuable opportunity to enhance employee morale, retention, and loyalty. Organisations that actively support staff during family emergencies foster goodwill and build a reputation as compassionate and responsible employers. Beyond the cultural benefits, there are also legal incentives for compliance. The government’s guidance makes it clear that failure to properly administer NCL or SNCP could expose employers to claims of discrimination or unfair dismissal.

By contrast, taking a proactive approach - such as updating internal policies and training managers - can help embed a supportive workplace culture and reduce the risk of legal disputes. Employers also have the flexibility to go beyond the statutory minimum by offering enhanced schemes. These might include paying above the statutory rate or waiving notice requirements, both of which can serve as attractive features in competitive recruitment and retention efforts.

Challenges and Considerations

a.     Administrative complexity: The introduction of NCL and SNCP brings new administrative responsibilities for employers, particularly within HR and payroll functions. Organisations must update their family leave policies, establish clear internal procedures, and potentially adapt payroll systems to calculate and process SNCP accurately. The notice requirements-especially the distinction between Tier 1 and Tier 2 leave-are more nuanced than those for other types of statutory leave, making staff training and clear communication essential. To support employees in providing the correct information, employers may find it helpful to use templates or checklists that capture key details such as dates of neonatal care and intended leave periods.

2. Overlap with other leave: Coordinating NCL with existing family leave entitlements presents another layer of complexity for employers. Since maternity and adoption leave cannot be interrupted once started, neonatal leave will typically follow the end of those periods. Employers must also be mindful of special circumstances, such as multiple births. Explanations regarding these specific situations are dealt with in the employer’s technical guidance to neonatal care leave and pay, which can be found here These situations often require individualised attention and careful record-keeping to ensure fairness and compliance with the rules.

3. Financial and legal risks: While employers can reclaim specific proportions of the SNCP payments from HMRC, they are responsible for advancing the pay upfront, which may pose short-term cash flow challenges-particularly for smaller organisations. Employees who do not meet the service requirement for SNCP may still take unpaid leave, but this could cause financial difficulty for those who may be newly hired or on a low income. Employers must also handle sensitive medical information with care and avoid any actions that could be perceived as discriminatory. Even unintentional missteps in administering NCL or SNCP could lead to legal claims or financial penalties. The legislation protects neonatal leave in line with other family-related rights, meaning any misuse or denial of NCL could be treated as an unlawful detriment. Ensuring compliance is not only a legal obligation but also a reflection of an employer’s commitment to supporting staff during critical life events.

In summary, the new statutory Neonatal Care Leave and Pay rights give eligible parents significant additional support during a challenging time. Employers and employees alike should familiarize themselves with the rules, with employer’s utilising the new technical guidance to assist in dealing with requests for leave. Clear policies, compassionate handling and proper systems will help ensure both parents can take the leave they need while employers stay compliant. The reforms reflect a growing recognition that families benefit when workplaces support parents through difficult early weeks after a birth.

For tailored advice on neonatal leave and pay, please contact our Employment team.