Neonatal Leave becomes a Day 1 right

Neonatal Leave becomes a Day 1 right

 

The Department for Business and Trade confirmed in January 2025 that a day one right to neonatal leave for working families with babies in neonatal care will be introduced from 6 April this year.

This news follows the passing of the Neonatal Care (Leave and Pay) Act in 2023.

Neonatal Care Leave will apply to parents of babies who are admitted into neonatal care and require seven or more days of continuous neonatal care within the first 28 days of their birth. These measures will allow eligible parents to take up to 12 weeks of leave in addition to any existing parental leave entitlements that they have, including maternity and paternity leave. Alongside the leave entitlement, statutory neonatal care pay will also be available to those who meet continuity of service requirements and a minimum earnings threshold. 

 

Neonatal Care Pay

To qualify for statutory neonatal care pay, an employee must have been continuously employed for at least 26 weeks and their average weekly earnings (over a defined eight-week period) must meet or exceed the lower earnings limit.

Neonatal care pay is paid at the same rate as statutory paternity pay or statutory shared parental pay. An employee can claim for up to 12 weeks and the leave must be used within the first 68 weeks following the child’s birth.

Employers have the option to provide a higher rate of neonatal care pay as part of their overall family-friendly leave policies if they want to. The Government has published  Regulations to support these changes which, subject to Parliamentary approval, will take effect from 6 April 2025.

 

What should employers do?

Employers should ensure that they have a policy for dealing with neonatal care leave and pay and that their managers are aware of the new law and what is required of employers ahead of it coming into effect. We would advise businesses to update all internal policies including any family friendly policies to reflect the new entitlement.

If you require any further information on the Neonatal Care Act and the potential impact on you or your business, please don’t hesitate to contact our Employment Team at employment@bannerjones.co.uk or contact us.

 

You may also be interested in other recent Employment Law changes such as:

Updates to Sexual Harassment Laws

Improved redundancy protection for Maternity Leave

Carer’s Leave

Changes to Statutory Paternity Leave