Neonatal Care (Leave and Pay) Act: What employers need to know

On 20 January the government confirmed its commitment to enacting the Neonatal Care (Leave and Pay) Act.

We now have confirmation that this law will almost certainly come into force on 06 April 2025. The government has laid out regulations to implement the change which, subject to Parliamentary approval, will take effect from that date.

What does this mean?

The leave will apply to parents of babies who are admitted into neonatal care up to 28 days old and who have a continuous stay in hospital of 7 full days or longer. These measures will allow eligible parents to take up to 12 weeks of leave (and, if eligible, pay) on top of any other leave they may be entitled to – such as maternity and paternity leave.

Employment Rights Minister, Justin Madders said “Parents of children in neonatal care have more than enough to worry about without being concerned about how much annual leave they have left or whether they’ll be able to make ends meet. This entitlement will deliver certainty to them and their employers, setting baseline protections that give them the peace of mind to look after the one thing that matters most – their newborn baby.”

What do we know about the Neonatal Care (Leave and Pay) Act?

• Neonatal care leave will be a day one right which means that it will be available to an employee from their first day in a new job.
• Alongside the entitlement to leave, staff may also be eligible for pay. The government has confirmed that Statutory Neonatal Care Pay will be available to those who meet continuity of service requirements and a minimum earnings threshold.

What do we need to do?

Although this type of leave will only affect a small number of staff- and is only available to parents whose babies are born sick or premature- you will need to ensure that you have a policy in place and that you are aware of eligibility and entitlements.

If you currently offer enhanced forms of pay for other family leave (for example, enhanced maternity or paternity pay) then you need to consider whether you would align this new entitlement rather than only provide a statutory minimum.

We will be providing a new leave policy in due course, and certainly before the law comes into effect.