The Neonatal Care (Leave and Pay) Act is bringing in neonatal care leave (NCL), a new entitlement that will come into effect on 6 April 2025. It is designed to help parents take time off when their baby needs special care and, with this change, employers need to be up to date on who’s eligible, how long the leave lasts and how to handle pay and protections
What is “neonatal care”?
The Act defines three types of medical care that count as neonatal care:
- Any medical care received in a hospital
- Any care that doesn’t fit these definitions, or that doesn’t begin within the first 28 days after birth, won’t qualify.
- Palliative or end-of-life care
Any care that doesn’t fit these definitions, or that doesn’t begin within the first 28 days after birth, won’t qualify.
Who is eligible?
NCL is for employees whose baby is receiving or has received neonatal care. As part of recent updates in the Employment Rights Bill, employees can access NCL from day one of their employment.
To be eligible at the time of birth, you must be:
- The baby’s parent
- The baby’s intended parent (for surrogacy)
- The partner of the baby’s mother, living together in a long-term relationship with responsibility for raising the child
- If adopting, similar criteria apply
NCL is intended for the care of the baby, but in the sad event of the baby’s death after NCL has been accrued, the care requirement is waived and the leave can still be taken.
When and for how long can the leave be taken?
Neonatal Care Leave (NCL) is based on how long the baby receives neonatal care, capped at a maximum of 12 weeks. Parents can take one week of leave for each week the baby receives uninterrupted care, and it must be taken within 68 weeks of the baby’s birth or placement.
An uninterrupted week starts the day after care begins, meaning the baby must receive care for 8 consecutive days to qualify for one week of NCL. The leave can therefore only begin on the ninth day of care.
For multiple births, leave can’t be claimed separately for each baby receiving care at the same time. For example, if both twins receive 6 weeks of care, the maximum leave entitlement is still 6 weeks.
Tier 1” and “Tier 2” periods
The system also accommodates emergency situations where the employee isn’t on leave while the baby is in neonatal care, such as when paternity leave has ended but the baby is still in the hospital. To provide flexibility, NCL is divided into two periods:
- Tier 1: Lasts from the start of neonatal care until seven days after it ends. During this time, employees can take non-consecutive one-week blocks of NCL
- Tier 2: Any period after Tier 1, up to 68 weeks from the child’s birth. Remaining NCL must be taken in one continuous block
How much will employees on NCL be paid?
Employees who take neonatal care leave may be eligible for statutory neonatal care pay. To qualify, they must meet the following criteria:
- Be entitled to neonatal care leave
- Have completed 26 weeks of continuous service by the week before their neonatal care leave begins
- Earn at least the lower earnings limit on average over the eight-week period leading up to the week before the neonatal care leave starts
- Remain employed up until the week before their neonatal care leave starts
- As with neonatal care leave, eligible employees are entitled to a maximum of 12 weeks of statutory neonatal care pay.
The amount of weekly pay is whichever is lower out of the following:
- The current statutory rate (same as the statutory maternity pay rate)
- 90% of the employee’s average weekly earnings
What are the notice requirements?
Employees need to notify their employer when taking neonatal leave and/or pay, providing key details such as:
- Employee’s name
- Baby’s date of birth (or date of placement/entry to Great Britain for adoption)
- Start date(s) of neonatal care
- End date of neonatal care (if applicable)
- Desired start date of leave
- Number of weeks of NCL being requested
- Confirmation that the leave is for the purpose of caring for the baby
- Acknowledgement of the employee’s eligibility based on their relationship with the baby
- For Tier 1 leave, notice should be given before the first day of absence or as soon as possible. For Tier 2 leave, 15 days’ notice is required for one week of leave, and 28 days’ notice for two or more consecutive weeks.
Both the employer and employee can agree to waive these notice requirements if needed.
What protections are available to employees on NCL?
Employees taking NCL are entitled to specific protections and rights during their leave. These include:
- Maintaining the same terms and conditions of employment, excluding pay
- Being entitled to return to original role following a single period of NCL
- Gaining extended redundancy protection rights after taking six consecutive weeks of NCL (if not already covered by maternity, adoption or paternity leave)
- Being safeguarded against any detriment or dismissal related to their NCL entitlement
These redundancy protections begin the day after six weeks of NCL and continue until the child reaches 18 months of age.
Dismissing an employee for reasons linked to their NCL will be deemed automatically unfair.
What should employers do now?
To prepare for the implementation of NCL, employers should consider the following:
- Establish a clear process for employees to apply for neonatal leave
- Update handbook policies and contracts to reflect new entitlements
- Ensure employment contracts explicitly mention neonatal leave and pay rights
- Adjust payroll and HR systems to process neonatal leave and pay accurately, working with payroll providers to manage potential increases in workload
- Train line managers and HR teams to understand and sensitively manage neonatal leave requests, considering the impact on parents and performance after returning to work
- Plan for funding paid leave and temporary staffing needs, including establishing connections with staffing agencies for efficient cover
Hear from our People and Culture Manager
As we navigate the changes brought by the new neonatal care leave legislation, our People and Culture Manager, Eleanor Taylor, shares her thoughts on its importance:
“Neonatal care leave is a crucial step in supporting our employees during a challenging time. It’s important that employers understand and implement these entitlements to provide the right support when it’s needed most.”
To find out more about how the new neonatal care leave legislation impacts your workplace, contact Eleanor Taylor today at [email protected] further insights and guidance.
