The Government has recently published supporting regulations on Neonatal Care Leave and Pay, a significant development for working parents in the UK. The Regulations (subject to Parliamentary approval) are set to come into force on 6 April 2025 and aim to provide additional support to parents of babies requiring neonatal care.
The Neonatal Care (Leave and Pay) Act 2023, which received royal assent in May 2023, introduces a statutory right for parents to take paid leave if their baby is admitted to neonatal care.
This new entitlement is designed to alleviate the stress and financial burden on families during a challenging time whilst not impacting on their maternity, paternity and shared parental leave. Eligible parents will be entitled to up to 12 weeks of leave and pay in addition to their existing parental leave entitlements.
Neonatal Care Leave (NCL) will be available to parents of babies born on or after 6 April 2025 who are admitted to neonatal care within the first 28 days of birth (counting from the day after the baby is born) and require at least seven consecutive days of care (beginning on the day after neonatal care starts). This leave is a “day one” right, meaning it is available from the first day of employment. Both parents are entitled to NCL if they meet the eligibility criteria.
An eligible employee must, at the date of birth, be the child’s parent, intended parent (under surrogacy arrangement) or the partner of the child’s mother, or be the child’s adopter or prospective adopter (or partner of the same).
They must also have or expect to have responsibility for the upbringing of the child and are taking the leave to care for the child (although this requirement is disapplied where the baby dies or an adoption placement ceases after NCL has been accrued).
Eligible employees can take one week of leave for each week their baby receives neonatal care without interruption, up to a maximum of 12 weeks. The week begins on the day after care started. This leave can be taken in week-long increments and is in addition to other parental leave entitlements.
Statutory Neonatal Care Pay (SNCP) will be available to those who meet the minimum earnings threshold and have at least 26 weeks of continuous service with their employer. The pay rate will be £187.18 per week or 90% of average weekly earnings, whichever is lower.
For parents of twins or other multiple births, neonatal leave cannot be claimed for more than one baby if the babies are receiving care at the same time. For example, if both twins were to receive care for a period of 2 weeks, the parents would only be entitled to 2 weeks of leave.
Employees are required to notify their employers if they want to take Neonatal Care Leave, this includes telling their employer the date of the baby’s birth or placement/entry to the UK, the start and end date of neonatal care (if the end date is known – if not, they must give this information as soon as is reasonably practicable), the date they want the period of NCL to begin and how many weeks leave they want to take.
The employee must also provide confirmation that they are taking leave to care for their child and that they are eligible for NCL due to their relationship with the child.
There are two periods when NCL leave can be taken, these are referred to the ‘tier 1’ or ‘tier 2’. Where NCL is taken when the baby is receiving care, this will be classed as tier 1 leave and in these circumstances, leave can be taken in non-continuous blocks of a minimum of one week at a time. Tier 2 is not as flexible and is for any leave taken outside the ‘tier 1’ period. For tier 2 periods, leave can only be taken consecutively.
That said, the employer and employee may mutually agree to waive the notice requirements.
Employers must ensure they are prepared for the implementation of these new regulations. This includes updating employment policies, training HR staff and managers, and communicating the changes to employees. It is crucial for employers to understand the eligibility criteria and the process for applying for Neonatal Care Leave and Pay to ensure compliance and support their employees effectively.
Employers may wish to consider waiving the notice requirements given the differing tiers and also consider whether they provide enhanced pay for NCL, especially where they provide enhanced pay for other parental leave.
Providing support to employees during this challenging time is essential.
Employers should consider offering additional resources, such as Employee Assistance Programmes, counselling services or flexible working arrangements (where possible), to help parents balance their work and family responsibilities. Demonstrating empathy and understanding can foster a positive work environment and enhance employee loyalty.
The introduction of Neonatal Care Leave and Pay provides much-needed financial and emotional support to parents during a critical period.
This entitlement allows parents to focus on their baby’s health without the added stress of financial concerns or the fear of losing their job. It also ensures that parents can spend valuable time with their newborn, which is crucial for bonding and the baby’s development.
Employees who take Neonatal Care Leave will have the right to return to the same job or a suitable alternative role, enhanced redundancy protection (if 6 continuous weeks of NCL has been taken), and protection against dismissal and detriment, ensuring job security during and after their leave. This protection is vital for parents who may already be facing significant stress and uncertainty.
The introduction of Neonatal Care Leave and Pay marks a significant step forward in supporting working families in the UK. Its vital that employers ensure all members of staff are up to date with the policies and procedures.
If you have any questions about Neonatal Care Leave and Pay or need assistance with preparing for these changes, please do not hesitate to contact us. Our team of experienced employment solicitors is here to help you every step of the way.
To talk to our team, fill out our online contact form or call 03301 734 354.
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