New regulations in England, Scotland, and Wales will entitle employees to Neonatal Care Leave and Pay. The Government has announced that this initiative (introduced by a private member’s bill supported by the previous government) aims to support parents whose babies require neonatal care, allowing them to focus on their child's health without the added concern of work obligations. Proposals to introduce neonatal care leave in Northern Ireland, which largely mirror the new statutory entitlement in Great Britain, have not yet been introduced in Northern Ireland but are contained in the consultation on the Good Jobs Employment Rights Bill.
Which employees qualify for neonatal care leave?
- Who Qualifies: The entitlement applies to parents, including biological parents, adoptive parents, intended parents in surrogacy arrangements, and partners of the baby's mother, provided they have or expect to have responsibility for the child's upbringing. The right to take leave is a 'day one' right, meaning employees have no minimum period of service to qualify for taking the leave.
- Neonatal Care Definition: The right to leave applies to babies born on or after 6 April 2025. The baby must be admitted for neonatal care within 28 days of birth (or placement or entry into Great Britain in the case of adoption) and have a continuous stay in hospital of at least seven full days. Neonatal care includes medical care received in a hospital, medical care received elsewhere following discharge under the direction of a consultant, and palliative or end-of-life care.
What is the leave entitlement?
- Duration: Eligible parents can take up to 12 weeks of Neonatal Care Leave per affected child, depending on how long the baby is receiving neonatal care. In cases of twins or other multiple births, the leave is capped at 12 weeks in total, even if more than one baby requires neonatal care.
- Timing: The leave can be taken at any point within 68 weeks following the child's birth. As parents may typically already be taking maternity or paternity leave while their baby is receiving neonatal care in hospital, this flexibility in timing means it can be taken after any period of maternity or adoption leave. If taken while the baby is still receiving neonatal care (and up to a week post-discharge), the leave can be taken in non-consecutive blocks of at least one week. If taken after this period, the leave must be taken in one continuous block.
Due to the flexibility built into the regulations as to when employees can take neonatal care leave, the provisions on the notice employees are required to give employers to take the leave and the blocks of leave that can be taken at one time, are quite complex. They distinguish between “tier one” leave where an employee takes leave while their baby is still receiving neonatal care, or shortly afterwards and “tier two” leave where the employee takes the leave at a later date. The regulations make clear that employers may choose to waive the notice requirements for their employees.
What is the pay entitlement?
• Statutory Neonatal Care Pay: To qualify for pay during the leave, employees must have at least 26 weeks of continuous service with their employer by the end of the 15th week before the expected week of childbirth and earn on average at least £123 per week. The pay rate aligns with other statutory family-related pay entitlements, which is £187.18 per week for leave periods from 6 April 2025.
Protections and Rights:
- Employment Terms: During neonatal care leave, employees are entitled to the same terms and conditions of employment, excluding wages/salary. They also have the right to return to the same job or, if not reasonably practical, a similar job with equivalent status and terms.
- Protection from Detriment: Employees are protected from dismissal or any detriment due to taking or seeking to take Neonatal Care Leave. Dismissal in such circumstances will be considered automatically unfair.
While this is not a legal requirement, employers are advised to put in place a neonatal leave policy for their employees by 6 April 2025 so that employees are aware of their entitlements.
A fact sheet on neonatal care leave and pay and a template neonatal care leave policy can be found on the FSB Legal and Business Hub.