As of 6th April 2025, new rights have been introduced to support parents whose babies need specialist hospital care. These changes are designed to give employees the time and financial support they need during a challenging and stressful time.

As an employer, it’s essential to understand these new rights and ensure your business is prepared to comply. This guide will walk you through everything you need to know about neonatal care leave and pay, from eligibility to the process of implementation, ensuring a smoother transition for your employees and your business.

What is Neonatal Care Leave?

Neonatal care leave is a statutory right for employees who are parents of a baby (or babies) requiring hospital care within the first 28 days after birth. This leave is in addition to any other leave a parent may already be entitled to, such as maternity or paternity leave, and it applies from day one of employment.

In addition to taking time off, employees may also be entitled to neonatal care pay, which mirrors the rates for statutory maternity or paternity pay, unless you’ve agreed to pay more. However, unlike leave, neonatal care pay is not a day-one right, meaning employees need to meet specific eligibility criteria.

Employees can take neonatal care leave in weekly blocks, up to a maximum of 12 weeks. Each block is accrued for every seven consecutive days the child receives care and the leave must be taken within 68 weeks of the baby’s birth.

Importantly, the leave doesn’t have to be taken all at once. If the child is still in care or if the care ended less than seven days ago, leave can be taken in non-consecutive weeks. Otherwise, it must be taken in one continuous block.

Employees must notify you about their intention to take neonatal care leave. If the baby is still in care or was discharged within the last seven days, they can notify you immediately. Otherwise, they must provide 15 days’ notice for one week of leave or 28 days for multiple weeks.

Given the sensitive nature of neonatal care, it’s wise to be flexible with notice periods when necessary, while ensuring you maintain adequate records for payroll and compliance purposes.

What Are the Rights of Employees Taking Neonatal Care Leave?

Employees who take neonatal care leave are entitled to the same employment terms and conditions as if they were still working, with the exception of pay. This means that any benefits, such as pension contributions or healthcare, should continue to be available during their leave.

Additionally, employees are protected from detriment or unfair dismissal for taking neonatal care leave. They also have the right to return to their role (or a similar role) after their leave, provided they meet the necessary criteria.

Neonatal Care Pay – What Employers Need to Know

Neonatal care pay is not available to all employees who are eligible to take neonatal care leave. To qualify for statutory neonatal care pay, the employee must have:

• Been employed by you for at least 26 weeks.
• Earned at least £125 per week on average over the last eight weeks.
• Remained employed with your business up to the week before they claim the pay.

If an employee meets these criteria, they are entitled to pay at the statutory rate (£187.18 per week from April 2025) or 90% of their average weekly earnings, whichever is less. Employers can recover the statutory pay from HMRC, in the same way they would for maternity or paternity pay.

Employees are entitled to return to the same role after taking neonatal care leave if the leave duration is under 26 weeks (including any period of maternity, paternity, adoption or shared parental leave). For those who take longer than 26 weeks of leave, you must provide a similar role with no less favourable terms.

It’s essential to support your employees during this transition, and by ensuring their return is as smooth as possible, you’ll balance a supportive workplace culture that values both employee wellbeing and business success.

How Can Employers Support Employees During Neonatal Care Leave?

Supporting employees during a time when they are dealing with the stress and uncertainty of a baby’s neonatal care is crucial for maintaining a compassionate and supportive workplace. While providing the legal entitlements for neonatal care leave and pay is important, the emotional and practical support you offer can make a world of difference to your employee’s experience. Here are some thoughtful ways to show your support:

• Be flexible with notice periods and leave arrangements, especially in urgent or unpredictable situations, to ease stress for your employee.
• Show empathy and understanding by acknowledging the challenges of neonatal care and offering small gestures of support, such as sending cards or offering flexibility upon return.
• Offer a phased return with reduced hours or lighter duties to ease the transition back into work, or even the opportunity to work from home or work at different times of the day, if their role allows for it.
• Provide access to resources like counselling services or Employee Assistance Programmes (EAPs) to help employees manage stress and access confidential support.

Supporting your employees through neonatal care leave is not just about complying with the law, it’s about showing that you truly care for their wellbeing during one of life’s most challenging moments.

If you’re unsure how to implement these changes or need help with updating your policies, get in touch today.