{"id":27550,"date":"2025-03-31T13:52:58","date_gmt":"2025-03-31T13:52:58","guid":{"rendered":"https:\/\/www.moorethompson.co.uk\/?p=27550"},"modified":"2025-03-31T13:52:58","modified_gmt":"2025-03-31T13:52:58","slug":"neonatal-care-leave-what-is-it-and-what-does-it-mean","status":"publish","type":"post","link":"https:\/\/www.moorethompson.co.uk\/mt-pay\/payroll-press-articles\/neonatal-care-leave-what-is-it-and-what-does-it-mean\/","title":{"rendered":"Neonatal care leave \u2013 What is it and what does it mean?"},"content":{"rendered":"

From 6 April 2025, eligible employees will gain a statutory right to neonatal care leave and pay.<\/p>\n

This long-awaited reform, introduced under the Neonatal Care (Leave and Pay) Act 2023, aims to support parents during an intensely challenging period.<\/p>\n

Here\u2019s what you need to know about neonatal care leave and what it means for employers.<\/p>\n

The new entitlement at a glance<\/p>\n

The new legislation will allow eligible employees to take up to\u202f12 weeks of leave\u202fand statutory pay if their baby requires neonatal care. This is in addition to existing maternity, paternity, or shared parental leave.<\/p>\n

The entitlement applies to parents of babies:<\/p>\n

\u00b7 Admitted into neonatal care within 28 days of birth.<\/p>\n

\u00b7 Remaining in hospital for a continuous period of seven full days or longer.<\/p>\n

This leave will be a\u202fday-one right, meaning employees can access it from the start of their employment.<\/p>\n

The new entitlement will be available across England, Wales, Scotland, and Northern Ireland.<\/p>\n

Eligibility for statutory neonatal pay<\/p>\n

While neonatal care leave will be a day one right, statutory neonatal care pay will only be available to employees who meet the following criteria:<\/p>\n

\u00b7 Continuity of service<\/strong>: Employees must have worked for their employer for a set minimum period.<\/p>\n

\u00b7 Earnings threshold<\/strong>: Employees must earn at least \u00a3125 per week to qualify.<\/p>\n

Statutory neonatal pay will be \u00a3187.18 per week or 90 per cent of the employee\u2019s normal weekly earnings (whichever is lower) for 2025\/26.<\/p>\n

What does this mean for your business?<\/p>\n

The introduction of neonatal care leave and pay has significant implications for employers.<\/p>\n

With around 60,000 parents expected to benefit annually, you must prepare your payroll systems to handle statutory neonatal pay.<\/p>\n

This includes implementing the correct pay rates and ensuring compliance with continuity of service and earnings threshold requirements.<\/p>\n

You should also consider:<\/p>\n

\u00b7 Updating HR policies<\/strong>: Review and update your leave and pay policies to include neonatal care leave and pay entitlements. Make sure these updates are clearly communicated to all employees.<\/p>\n

\u00b7 Flexible workforce planning<\/strong>: With up to 12 additional weeks of leave now available to some employees, it is essential to plan for potential staffing gaps. Develop strategies to ensure business continuity, such as flexible working arrangements or temporary cover.<\/p>\n

\u00b7 Support for employees<\/strong>: Parents with babies in neonatal care are likely to experience significant stress. Providing clear information about their entitlements and offering additional support, such as counselling services or flexible working arrangements, can make a meaningful difference.<\/p>\n

\u00b7 Training HR teams and managers<\/strong>: Ensure relevant staff members are equipped to handle neonatal leave requests with sensitivity and consistency, avoiding missteps during emotionally charged situations.<\/p>\n

Beyond the clear moral reasons for implementing neonatal care leave and statutory pay, the implementation of neonatal care leave should benefit your business:<\/p>\n

\u00b7 Consistency in workforce planning<\/strong>: The statutory framework offers clarity for managing neonatal leave, reducing reliance on informal arrangements such as unpaid leave or annual leave requests.<\/p>\n

\u00b7 Boosting staff retention<\/strong>: Demonstrating support during difficult times can promote loyalty, helping retain employees who value employers with compassionate policies.<\/p>\n

This reform sits alongside other updates to family-friendly rights, such as upcoming changes to flexible working and carer\u2019s leave.<\/p>\n

Staying informed and proactive will help employers adapt smoothly and position themselves as supportive workplaces. For further guidance on neonatal care leave, get in touch<\/a> with our payroll team.<\/p>\n","protected":false},"excerpt":{"rendered":"

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