Employment Law Update: New Rules on Neonatal Leave and Pay

From 6th April 2025, the government is introducing new rules around Neonatal Leave and Pay.

The legislation will provide extra support for working parents whose babies need neonatal care.

While this is a positive step forward in supporting families going through difficult circumstances, there are a few key changes that employers need to be ready for.

What is neonatal care?

Neonatal care is described as any medical care received in a hospital, palliative or end of live care setting. In some circumstances, this can be received outside of hospital.

Who is eligible?

This is a day-one right for all employees, so there is no minimum service period required. Therefore, all employees who meet the following criteria are eligible:

• Any employee with a baby born on or after 6th April 2025.
• The baby must need neonatal care within the first 28 days after their birth.
• The hospital stay must have lasted seven continuous days.

What leave can employees take?

Employees with parental or other prescribed responsibilities for the child who meets the above criteria are entitled to take one week of leave for each consecutive seven days the child receives neonatal care.

• A maximum of 12 weeks' leave is available before the end of 68 weeks, beginning with the child’s date of birth, and employees are required to give notice of their intention to take leave.
• Neonatal care leave is in addition to other statutory family leave entitlements, meaning employees can accrue neonatal care leave at the end of any other entitlement they are taking.
• Subject to further eligibility criteria, employees taking neonatal care leave may also be entitled to receive up to 12 weeks of Statutory Neonatal Care Pay.

Statutory Neonatal Care Pay

Eligible workers may also be entitled to receive Statutory Neonatal Care Pay. This is paid at the same rate as other family leave payments, such as maternity or paternity pay. From 6th April 2025, this will be £187.18.

What this means for Employers

In addition to ensuring that your parental leave policy covers neonatal care, there are other steps employers should take in preparation for the change:

• Review and update workplace policies to include Neonatal Care Leave provisions.
• Keep your employees in the loop and be open about the changes. Make sure your team know how to request neonatal leave and pay.
• Have a plan for absences and consider how you’ll manage workloads if an employee needs time off for neonatal care.
• Make sure your payroll system is set up to handle neonatal pay correctly.

Employers should also be aware of other upcoming changes to family leave entitlements. While there isn’t yet detail on when bereavement leave for miscarriage before 24 weeks is coming in, progressive employees could look to implement that now.

The changes are a big step in supporting working parents when they need it the most. Therefore, being prepared isn’t just about staying compliant, it’s about demonstrating that you’re a business that values its people.