New Neonatal Leave and Pay: What Employers Need to Prepare For

From 6th April 2025, parents of babies requiring neonatal care will gain a new statutory right to Neonatal Care Leave and Pay. This change, introduced through the Neonatal Care (Leave and Pay) Act 2023, offers vital support for working families during what can be a stressful and uncertain time.

Key Details of the New Right

This entitlement applies to parents whose newborn babies are admitted to neonatal care within the first 28 days of life and who remain in care for at least seven consecutive days. Eligible parents will be able to take up to 12 weeks of Neonatal Care Leave. This leave will be in addition to any existing leave entitlements, such as maternity, paternity, or shared parental leave.

For those meeting the relevant criteria, including a qualifying period of employment and a minimum earnings threshold, Statutory Neonatal Care Pay will also be available to provide financial support during their time away from work.

The Department for Business and Trade has confirmed that regulations to bring these changes into effect have been laid before Parliament and are expected to take effect as planned in April 2025.

Preparing Your Business for Change

Employers should take proactive steps now to prepare for this upcoming legislation. Key actions include updating family leave and pay policies, ensuring payroll systems can accommodate Neonatal Care Pay, and communicating the changes to managers and employees.

Understanding and implementing this new entitlement effectively will not only ensure compliance but also demonstrate a commitment to supporting employees during life’s most challenging moments.

If you would like tailored advice or support in updating your policies and procedures, our employment law team is here to assist. Contact us today to ensure you’re fully prepared for these changes.