As the Employment Rights Minister correctly noted, “Parents of children in neonatal care have more than enough to worry about without being concerned about how much annual leave they have left or whether they’ll be able to make ends meet”.  

It is hoped that this new neonatal care leave and pay provision will at least address the latter concern. 

Headlines

• Neonatal Care Leave (NCL) is a new right for parents with children born after 6 April 2025, who receive neonatal care within the first 28 days of their birth, to accrue leave whilst their child is receiving that care. It is capped at 12 weeks. 
• Parents with 26 weeks’ continuous service who qualify for NCL will receive Statutory Neonatal Care Pay (SNCP) during the leave period – this will be the same rate as statutory maternity/paternity/shared parental leave pay. 

As with all parental leave provisions, the devil is in the detail! Below are some FAQs on the new provisions to unpack some of those details. 

Q1       What do parents with children in neonatal care do at the moment? 

Currently, there is no specific statutory right to leave or pay for parents if their child is born and needs neonatal care. If a baby is receiving neonatal care, then the parents can take the time as maternity/paternity/adoption/shared parental leave but that could then reduce the time the parents have with the child when they are discharged from neonatal care. 

Q2       Who’s entitled to NCP?

Any parent who has a child receiving neonatal care within the first 28 days of their life who is born on or after 6 April 2025. The child must have had a minimum of seven continuous days in neonatal care. Employees are entitled to NCP from day one of their employment. Neonatal care is medical care within a hospital, palliative or end-of-life care and can include medical care received after a child leaves hospital but is still under the direct care of a consultant and is receiving ongoing monitoring by healthcare professionals arranged by the hospital. This second part is worth noting in that the legislation takes the leave and pay beyond the hospital period.  However, our understanding of the legislation is that neonatal care is continuing whilst the baby is at home, and this is specific consultant-run care rather than monitoring by health professionals in the community such as health visitors and/or midwives. 

Q3        What’s the definition of a ‘parent’?

Employees who are entitled to NCL must either be the parents of the child receiving neonatal care or the intended parents where the child is being adopted and can include the partner of the child’s mother who has or expects to have the main responsibility (alongside the mother) for the upbringing of the baby. 

Q4       How long is NCL? 

The length of any NCL depends on the number of weeks a child spends in neonatal care.  The maximum amount is 12 weeks’ leave. Eligible parents will be entitled to one week’s leave for each week a child spends in neonatal care. 

Q5       When is NCL taken?

The leave must be taken within the first 68 weeks of the child’s life. Unlike other parental leave periods which are set amounts, parents accrue NCL according to the amount of time their child spends in neonatal care. The new right allows the parents to take the accrued leave either during the period of neonatal care or when other family leave provision has run out e.g. at the end of maternity/paternity/adoption/shared parental leave.  Regulations introduce the concept of Tier 1 and Tier 2 leave. Tier 1 leave is when the NCL accrued is taken whilst the baby is receiving care and up to a week after being discharged from care.  Tier 1 leave can be taken in non-continuous blocks of a minimum of one week at a time. Tier 2 is leave accrued and taken at any other period, for example at the end of the maternity/paternity/adoptions/shared parental leave period (provided it’s within the first 68 weeks of the child’s life).  Tier 2 leave must be taken in one continuous block.   If the child in neonatal care dies, the parents are still entitled to take the accrued leave.

Q6        Is NCL paid leave? 

Employees who qualify for NCL and have 26 weeks’ continuous service with their employer are entitled to Statutory Neonatal Leave Pay (SNCP).  It is payable at the same rate as statutory maternity/paternity pay. 

Q10     Do eligible employees need to give notice of intention to take leave? 

As with other parental leave, employees must provide notice to their employer of their intention to take NCL.  The notice must include the following.

Their name; Baby’s date of birth (or date of placement if adopting); Start date of neonatal care; End date of neonatal care; Date on which the employee wants to take the leave; The number of weeks of NCL the notice is being given for; That the leave is being taken to care for the baby; Confirmation that the employee is eligible to take the leave due to their relationship with the baby.

The periods of notice differ according to when the leave is taken.  For Tier 1 leave, an employee must give 15 days’ notice and for any Tier 2 leave, 28 days’ notice. Obviously, employers can waive such notice provisions should they wish. 

Q11     Are an employee’s employment rights protected during NCL? 

As with other family leave periods, the employee taking the leave remains entitled the terms and conditions of their employment except for pay. In addition, there are similar rules for when an employee will be entitled to return to their original role.  This will always be the case after a single period of NCL.  Employees who have taken six continuous weeks of NCL also benefit from the extend redundancy protection rights (see more detail here); the right to be offered a suitable alternative vacancy will apply from the day after the employee has taken six consecutive weeks of leave and ending on the day after the child is 18 months old. Employees will also be protected from detriment and dismissal for exercising their right to take NCL.

Q12   How should organisations be responding? 

• Policy update is clearly the first step. Whilst it is hoped that most parents who are employed will not have to go through the trauma of a baby in neonatal care, it’s a key right that must be included within your Parental Leave policy document.   
• Notice Provisions given that the Government is anxious to give flexibility to parents as to when they can take the leave, the notice provisions are more complex than with other leave.  We would advise that they be clearly outlined in the Policy and a template notice form be attached to make it easier for employees to complete. Having a sick baby is a stress in itself without the difficulty of working out how to give notice for leave and pay.   Alongside the need for clear documentation is the need for training for any relevant staff so that they understand the new right, understand who is eligible and understand the various times the leave can be taken.     
• Contractual provisions consider how this leave and pay will fit alongside any contractual provision and whether as an organisation you wish to provide a more generous scheme in terms of weeks’ leave provided or rate of pay. 
• Privacy and confidentiality it’s worth remembering that as an employer any details as to the child’s medical conditions are sensitive information under the DPA.  They should not be shared with any other staff unless it is the employee’s express wish that certain information be disseminated to certain colleagues or teams.    

If you would like further assistance in drafting new policies and procedures or advice on how this new right might affect your organisation please get in touch with our team.