Working families with babies in neonatal care will soon be entitled to additional time off as a day-one right, with paid time-off being subject to certain criteria.
Starting on 6 April 2025, parents can gain access to up to 12 weeks’ extra leave on top of other leave they are entitled to, including maternity / paternity leave and shared parental leave, as the Neonatal Care (Leave and Pay) Act 2023 comes into effect.
At present, parents of newborn babies requiring neonatal care do not receive any extra time off or pay, instead relying on statutory leave not intended for long hospital stays or the discretion of their employer, and in some cases have to return to work while their babies are still in hospital.
Neonatal Care Leave (NCL)
The new right to Neonatal Care Leave (NCL) for employees 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.
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 UK 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.
Tier 1 Period
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.
Tier 2 Period
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.
Where it is not reasonably practicable to give the relevant notice, the employee must give notice as soon as reasonably practicable.
Statutory Neonatal Care Pay (SNCP)
A new entitlement of Statutory Neonatal Care Pay (SNCP) is also to be introduced for parents of children who are born after 6 April 2025 and who receive neonatal care. 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).
Protections for Employees on NCL
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.
Conclusion
The introduction of Neonatal Care Leave from April 2025 will require updates to your policies, handbooks, and payroll systems to ensure compliance with the new legislation. At Petaurum HR, we help businesses navigate employment law changes, ensuring compliance while supporting employees effectively. If you need guidance on how Neonatal Care Leave and Pay impacts your business policies, we’re here to help.
Get in touch today to discuss how we can support you.