Regulations have been laid before Parliament which, if approved, will implement the new statutory entitlement to neonatal care leave and pay with effect from 6 April 2025.

Around 40,000 babies spend over one week in neonatal care each year, and the Government estimates that around 60,000 parents will be eligible for these new rights. It’s important that employers understand what is changing, and what they need to do.

This briefing sets out details of the new rights, and what employers should do now to prepare.

Neonatal Care Leave (NCL)

The new right to Neonatal Care Leave (NCL) for employees will be brought into force by the Neonatal Care Leave and Miscellaneous Amendments Regulations. NCL will apply where a baby is born on or after 6 April 2025, receives neonatal care starting within 28 days of birth and goes on to spend 7 or more continuous days in care. NCL will be a ‘day one’ right, so it can be taken by all eligible employees from day one of their employment.

Neonatal care means:

1. Medical care received in a hospital (which includes a maternity home, as well as clinics and outpatient departments).

2. Medical care received in any other place following discharge from hospital (provided that the care is under the direction of a consultant and includes ongoing monitoring by / visits from healthcare professionals arranged by that hospital).

3. Palliative or end of life care.

Neonatal care must have taken place within the first 28 days of birth and must continue for at least 7 consecutive days. This means that employees are unable to claim NCL where the baby’s medical care is required after those first 28 days.

Critically, the new rights are available to both parents. To be eligible an employee must:

1. at the date of birth, be the child’s parent, intended parent (under surrogacy arrangement) or the partner of the child’s mother, or be the child’s adopter or prospective adopter (or partner of the same);

2. have or expect to have responsibility for the upbringing of the child; and

3. take leave to care for the child (although this requirement is disapplied where the baby dies or an adoption placement ceases after NCL has been accrued).

Eligible employees can take one week’s leave for each week that the baby receives neonatal care without interruption. This is then capped at 12 weeks. The week begins on the day after care started.

NCL cannot be claimed twice by the same employee respect of multiple births where the babies are receiving care at the same time. The maximum amount of leave for that employee remains at 12 weeks.

NCL can be taken on top of any other leave the employee may be entitled to, including maternity and paternity leave. However, NCL must be taken within 68 weeks of the baby’s birth (or placement / entry into GB for adoption cases).

NCL can be taken while the child is still receiving neonatal care, or later, although it cannot start before the second week of neonatal care. Generally, employees will tag NCL onto the end of their family leave, given that they will likely be on some other form of family leave at the time their baby is in neonatal care (i.e. maternity or paternity leave). This then helps to compensate for the time the baby spent in neonatal care. 

In all cases, employees must tell their employer the date of the baby’s birth/placement/entry to the UK, the start and end date of neonatal care (if the end date is known – if not, they must give this information as soon as is reasonably practicable), the date they want the period of NCL to begin, how much leave they want to take, confirm that they are taking leave to care for their child, and, if it’s the first notice in respect of that child, confirm that they are eligible.

However, the notice period requirements and whether leave can be taken consecutively or non-consecutively depends on whether the leave is taken in what is referred to as the ‘tier 1’ or ‘tier 2’ period.

Note however that the employer and employee may mutually agree to waive the notice requirements.

The ‘tier 1’ period is the period during which the child is receiving neonatal care or during the week following the end of neonatal care.

In this period, employees don’t have to give their employer much notice of leave and notice doesn’t need to be in writing. Notice need only be given by the time they are due to start work on the first day of each week of leave. This reduced notice period requirement reflects the fact that, if leave is taken during the ‘tier 1’ period, it will often be taken in unforeseen and emergency circumstances.

During the ‘tier 1’ period, NCL cannot be taken for the first week that a child is in neonatal care. It can be taken as consecutive or non-consecutive weeks. Any remaining entitlement to NCL may be taken in the ‘tier 2’ period.

In practice, NCL is only likely to be taken in the ‘tier 1’ period by the child’s father or mother’s partner, since the mother is likely to be on maternity leave during this period. It might, for example, be used by the father or partner where paternity leave has run out whilst the baby is still undergoing neonatal care. In adoption cases, it is only likely to be taken during the ‘tier 1’ period by the parent who is not taking adoption leave.

The ‘tier 2’ period – which is any leave taken outside the ‘tier 1’ period – is not as flexible.

In this period, employees must give 15 days’ notice of one week’s leave, or 28 days’ notice of two or more weeks’ leave. Additionally, leave in this period can only be taken consecutively.

The lack of flexibility reflects the fact that, in practice, ‘tier 2’ leave is likely to be taken where someone on maternity or adoption leave tags on NCL to the end of their maternity or adoption leave, such that they can pre-empt the taking of leave and plan to give advance notice accordingly.

Similar protections are afforded to employees taking NCL, as to those taking other types of family leave entitlements, including, for example, the right to return to their original role, enhanced redundancy protection, and protection against dismissal and detriment.

Statutory Neonatal Care Pay (SNCP)

The Statutory Neonatal Care Pay (General) Regulations 2025 implement a new entitlement for parents of children who are born after 6 April 2025 and who receive neonatal care to receive Statutory Neonatal Care Pay (SNCP). This is paid at the statutory prescribed rate (initially £187.18 from April 2025) or 90% earnings if lower.

Whilst the right to NCL is a day one right, parents must have 26 weeks’ service and meet a minimum earnings threshold to be eligible for SNCP.

Employees may choose for SNCP to be paid for a single week or for a number of weeks (although these must be consecutive in a ‘tier 2’ period). The required length of notice differs depending on whether the pay is sought for leave during the’ tier 1’ or ‘tier 2’ period as follows:

  • where the statutory pay week begins in a ‘tier 1’ period, 28 days’ notice must be given.

  • where the statutory pay week begins in a ‘tier 2’ period 15 days’ notice must be given for a single week of statutory pay, but 28 days’ notice must be given for two or more consecutive weeks of statutory pay.

Where it is not reasonably practicable to give such notice, the employee must give notice as soon as reasonably practicable.

Further guidance

The Government has said that it will publish guidance (on GOV.UK) ahead of 6 April 2025. This will comprise of an employer guide and guidance for employees, in the same format as is provided for other similar rights.

ACAS will also publish guidance for employers when the legislation is in force.

What should employers do now?

Employers should take steps now to familiarise themselves with how these new rights operate. They should prepare and implement clear and considered neonatal care leave policies before April 2025, set up training for managers, and ensure that employees are aware of the support they can claim under these policies.

When developing these policies, employers should consider whether to:

  • enhance the statutory payment scheme, whether in terms of pay or duration, particularly if they do so for other types of parental leave. They should consider whether this will be on a discretionary basis or not.

  • waive notice requirements given the complexity of the different notice requirements for ‘tier 1’ or ‘tier 2’ leave and the fact that regulations expressly provide for an employer to operate separate notice provisions.

  • offer any assistance (for example, EAP) to help to deal with any mental and/or physical health impacts of having a child in neonatal care.

  • communicate to employees how family leave will operate if their child receives neonatal care prior to 6 April 2025.

Employers should also ensure that any policies:

  • enable eligible employees to easily navigate any notice provisions and other requirements for claiming NCL and SNCP/enhanced pay. Any policy should be clear and HR should be equipped to lead employees through the process with compassion and clarity. Template forms for employees to use would be helpful.

  • assist employees in understanding how neonatal care leave and pay interacts with other parental leave entitlements, particularly if the employer offers enhanced pay for other types of parental leave. For example, maternity leave cannot be curtailed and restarted and so it’s likely that neonatal care leave will be taken at the end of maternity leave, and probably once maternity leave pay ends. It may be helpful to give some example scenarios.

  • comply with data protection requirements. For example, details of the baby’s medical conditions should be kept private, noting of course that the employee may not wish to share with colleagues that they are taking neonatal care leave.

  • are updated across the board to reflect the protections offered to employees taking NCL, including in redundancy, and in respect of unfair dismissal and detriment.

Ahead of April 2025, employers should also ensure that payroll systems or providers can accommodate neonatal care pay calculations and payments.

If you would like any further information, or assistance in preparing a policy or providing training to your teams, please do get in touch with a member of the TLT Employment Team and they will be happy to help.

Co-author: Catherine Roylance

This publication is intended for general guidance and represents our understanding of the relevant law and practice as at February 2025. Specific advice should be sought for specific cases. For more information see our terms and conditions.

Date published

05 February 2025

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