Neonatal Leave and Pay – what does this new right mean for employees and employers?

This article is the seventh in our Employee wellbeing series. Further details are below.

As of 6 April 2025, a new law has come into effect entitling eligible employees in the UK to neonatal care leave (NCL) and neonatal care pay (NCP).

The Neonatal Care (Leave and Pay) Act 2023 introduces these significant new statutory rights. Here's what employers and employees need to know.

What is Neonatal Care?

The legislation defines neonatal care widely and encompasses the following care for newborn babies which starts in the first 28 days after birth:

• hospital care
• follow-up care, including ongoing monitoring and healthcare professional visits
• palliative or end-of-life care 

Neonatal Care Leave 

NCL grants employees additional leave to enable them to be by the side of their newborn child during critical periods of neonatal care. Key details include:

• Eligibility: Any employee with a qualifying relationship to the child, including biological parents, adoptive parents, or surrogacy cases.
• Duration: One week of leave per qualifying week of neonatal care, up to a maximum of 12 weeks, taken in weekly blocks.
• Timing: leave may be taken in addition to other types of statutory family leave (for example at the end of a period of maternity leave) but must be used within the first 68 weeks after the child’s birth.
• Criteria: The neonatal care must have begun within 28 days of a child’s birth and last at least seven consecutive days.
• No Service Requirement: NCL is a day-one right for employees, available regardless of length of service.
• Job Protection: Employees are protected from dismissal or detriment and have the right to return to their previous role (or a suitable alternative in redundancy situations).
• Notice requirements: employees are required to give notice prior to taking leave, however this can be waived by the employer. 

Neonatal Care Pay

For financial support, eligible employees can receive statutory NCP. Key details include:

• Eligibility: Requires at least 26 weeks' continuous service and earnings above the lower earnings limit.
• Payment: Paid at the same rate as statutory parental pay for a maximum of 12 weeks.
• Timing: only to be paid for leave taken within the first 68 weeks after the child’s birth.
• Pension Contributions: Employers must maintain their usual contributions, though employees’ minimum contributions may reduce.

Employer Considerations

Employers are legally bound by the statutory scheme. However, some employers may choose to offer an enhanced policy, such as enhanced pay, waiver of notice requirements or reduced continuous service requirements in order to receive NCP.

This legislation marks another progressive and important step to enhancing family-friendly workplace rights across England, Scotland and Wales. Ensuring employees can focus on their child’s wellbeing during a stressful and challenging time without the added pressure of work commitments or financial strain. 

Should you have any questions related to neonatal care or leave, or require support in producing an appropriate policy for your employees, please do not hesitate to contact the Employment team here at Bristows. 

For more information on how we can support you to support your employees, please contact Manon Rattle or another member of the Employment Team.

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Employee wellbeing series

Other articles in the series so far:

1. Employee wellbeing
2. Menopause in the workplace
3. Supporting employees through fertility challenges
4. Flexible working
5. Carer's leave
6. Key Employment Law Changes April 2024
7. Neonatal leave and pay