Neonatal Leave: Be Prepared for Changes in April 2025
Posted on January 30, 2025
In recent years, there has been a growing recognition of the challenges faced by working parents, particularly those whose newborns require extended medical care. A significant step in addressing these challenges is the introduction of neonatal leave, an employment right designed to support parents during such difficult times.
Many parents in these situations find that a substantial portion of their maternity or paternity leave is spent in hospitals rather than at home bonding with their child. This places them at a disadvantage compared to parents who can spend their leave caring for their newborn at home.
To address this, the Government proposed neonatal leave and pay, allowing employees to receive additional paid leave for every week their child remains in neonatal care, up to a specified limit. This extra leave would be added onto the end of standard maternity or paternity leave, ensuring parents don’t lose valuable time at home with their child.
The Neonatal Care (Leave and Pay) Act 2023
On 24 May 2023, the Neonatal Care (Leave and Pay) Act became law. More recently (January 2025), the Government introduced draft regulations to implement this new employment right. Subject to parliamentary approval, neonatal leave is expected to come into effect on 6 April 2025.
Key Provisions of Neonatal Leave
Eligibility and Duration
Neonatal care leave is a day-one right for all eligible employees.
To qualify, the newborn must require neonatal care for at least seven consecutive days, starting before the end of 28 days after birth.
Eligible employees can take one week of leave for every seven days their child is in neonatal care, up to a maximum of 12 weeks.
Definition of Neonatal Care
The law defines neonatal care as any medical care received in a hospital, palliative or end-of-life care, and, in some cases, care received outside of a hospital setting.
Timing and Notice Requirements
The maximum leave entitlement can be used within 68 weeks from the child’s birth.
Employees must provide notice of their intention to take leave, detailed in the regulations.
Pay Entitlement
Employees meeting additional eligibility criteria may receive Statutory Neonatal Care Pay for up to 12 weeks.
This pay is set at the same statutory rate as other family leave payments, such as maternity or paternity pay.
Protection Against Dismissal
Employers must note that dismissing an employee for exercising their right to neonatal leave will be deemed unfair dismissal.
Implications for Employers
Employers should begin preparing for this new entitlement by updating policies, and ensuring payroll systems are ready to accommodate statutory neonatal pay. As neonatal leave will be an additional entitlement beyond maternity and paternity leave, businesses must account for its impact on workforce planning and parental leave policies.
Conclusion
The introduction of neonatal leave marks a significant milestone in supporting working parents during challenging times. By preserving maternity and paternity leave entitlements while offering additional support for neonatal care, the Government is acknowledging the unique needs of parents with premature or medically fragile newborns. Employers should stay informed and ready for implementation by April 2025 to ensure compliance and support their employees effectively.
Do get in touch with SME HR Consultancy if you need support in the implementation of this new regulation.
+44 (0) 2382 518 004
info@smehrconsultancy.com
www.smehrconsultancy.com
