Becoming a parent is life-changing, but when your baby needs extended medical care, balancing work and family responsibilities can become especially challenging. To support families during these critical moments, the UK government introduced the Neonatal Care (Leave and Pay) Act, effective from 6 April 2025. This is a significant new statutory entitlement, designed to ease the pressure on parents whose newborns require prolonged hospital care.
As a solicitor, I know that keeping up with legal changes can feel overwhelming for business owners. Many of my clients aren’t sure where to begin or what practical steps they need to take.
In this blog, I’ll explain clearly and practically what Neonatal Care Leave and Pay means for your business, highlight key points you need to consider, and guide you through the steps to ensure you remain compliant.
From 6 April 2025, if your newborn requires hospitalisation in neonatal care within their first 28 days and remains in hospital continuously for seven days or more, you’ll be eligible for up to 12 additional weeks of statutory leave and pay. This entitlement is available on top of your existing maternity, paternity, adoption, or shared parental leave, offering extra peace of mind when you need it most.
Neonatal care typically includes specialised medical support for babies born prematurely or those experiencing health complications soon after birth. With this new legislation, you can focus fully on your family’s well-being during these vital early days, without added financial or professional stress.
The entitlement applies to employees whose baby was born on or after 6 April 2025, requires admission into neonatal care within the first 28 days of life, and remains hospitalised for a continuous period of at least seven full days. Neonatal care includes specialised medical attention for newborns born prematurely or with health complications.
Key points at a glance
Eligibility differs slightly for leave and pay. This distinction ensures that while leave is universally accessible, statutory pay follows established principles consistent with maternity and paternity leave provisions.
All employees qualify from their first day of employment, provided their baby meets the neonatal care criteria (seven continuous days or more in neonatal care within 28 days of birth).
To receive (SNCP), an employee must have at least 26 weeks' continuous employment by the relevant week (typically, the 15th week before the expected week of childbirth) and earn above the lower earnings limit £125 per week, as currently defined.
This change is part of the UK Government’s broader employment law reform programme under the Employment Rights Bill, aiming to enhance workplace rights and better support working families.
The rationale behind introducing Neonatal Care Leave is straightforward yet compelling. Before these changes, many parents faced considerable stress balancing the emotional demands of a sick newborn against financial and employment obligations. Charities such as The Smallest Things and Bliss campaigned extensively to address this, highlighting the critical need for parents to be involved in their baby’s care without risking their employment or financial stability.
In practice, the new entitlement alleviates the pressure to return to work prematurely or exhaust existing leave entitlements prematurely, thereby promoting family welfare and workforce retention.
With Neonatal Care Leave and Pay now in effect, you’ll need to adjust both your operational approach and administrative procedures quickly. To help you navigate these new statutory requirements clearly, I have outlined essential actions and practical business advice below.
Employees entitled to Neonatal Care Leave may be absent for up to 12 weeks, which can present operational challenges, particularly for smaller businesses. You should therefore:
Consider temporary staffing options such as short-term recruitment, agency workers, or fixed-term contracts to maintain business continuity.
Where temporary cover isn’t possible, allocate responsibilities fairly among your existing staff, ensuring clear communication and realistic workloads to avoid overstretching your team.
Inform your team about any necessary adjustments and reassure them that these measures are temporary, supporting a valued colleague during a challenging time.
Ensuring administrative accuracy is naturally a very important aspect. Here’s what you should do right away:
Revise your staff handbooks, employment contracts, and parental leave policies clearly to reflect Neonatal Care Leave and Pay. Specify eligibility conditions, leave duration, notification processes, and details about SNCP entitlement.
Confirm your payroll system or software provider has updated statutory calculations accurately for neonatal pay. Consider running a test scenario or consulting your accountant or payroll provider to guarantee accuracy.
Finally, proactive communication is just as important to smooth implementation:
Issue clear guidance about the new entitlement, how it works, and the process for making requests.
Ensure your line managers and HR teams understand their responsibilities under the new rules. Providing brief training or quick reference guides will help them handle requests accurately, sensitively, and in compliance with the law.
Periodically review your approach in the initial months, encouraging feedback from managers and employees to identify and address any practical difficulties quickly.
Taking these practical, proactive steps will ensure your business complies smoothly with Neonatal Care Leave and Pay requirements. While challenging, remember that beyond compliance, it demonstrates support for your employees, which positions your organisation positively internally and externally.
As this is a statutory entitlement, failure to comply may lead to legal risks including Employment Tribunal claims for unlawful deduction of wages, unfair treatment, or discrimination. Additionally, reputational risks can arise from perceived failure to support employees at such a sensitive time. Compliance, therefore, is both a legal requirement and sound business practice.
Neonatal Care Leave and Pay forms part of broader employment law reforms intended to modernise and strengthen workers’ rights. Key measures under the Employment Rights Bill include:
These changes reflect a clear move towards workplace fairness, flexibility, and family-friendly employment policies.
As a solicitor, I strongly recommend approaching this new entitlement positively and proactively. Understanding Neonatal Care Leave and Pay helps you meet your legal obligations and demonstrates your organisation’s genuine care for employee welfare. This can significantly enhance your reputation, employee loyalty, and workplace morale.
Should you require further assistance updating your employment contracts or policies, our team at Lawyerlink is here to help you seamlessly navigate these changes.
Let’s ensure your business is fully compliant in this evolving employment landscape.