An update on recently published regulations regarding the Neonatal Care (Leave and Pay) Act 2023
Key contact: Juliette Franklin
New government guidance outlines what you need to know to comply with the Neonatal Care (Leave and Pay) Act 2023 from April. When babies are born prematurely or in ill-health, parents need to be able to focus on their child’s health above all else. In 2023, the UK government introduced new regulations to support parents whose newborns require neonatal care. Effective from 6 April 2025, these measures provide statutory entitlements for leave and pay during such critical times.
Background
The Neonatal Care (Leave and Pay) Act 2023 establishes a statutory right to leave and pay for eligible parents of babies requiring neonatal care. Its intention is to recognise the challenges faced by families with premature or sick babies and reduce financial and employment-related stress during the critical early weeks.
The Act provides up to 12 weeks of leave for eligible parents, available to employees from day one of employment. Employees taking neonatal care leave are protected against unfair dismissal or detriment.
Now the government has fleshed out what compliance with the Act is likely to look like, with its publication this month of more detailed Neonatal Care Leave and Miscellaneous Amendments Regulations 2025 and Statutory Neonatal Care Pay (General) Regulations 2025.
“Employers should ensure compliance with neonatal leave not only to fulfil their legal obligations but also to demonstrate a commitment to the well-being of their employees. Supporting new parents during such a critical time fosters loyalty, boosts morale, and promotes a positive, inclusive work environment, ultimately benefiting both the workforce and the organisation,” says Juliette Franklin, Legal Director at Acuity Law.
What employers need to know about the Neonatal Care (Leave and Pay) Act
- Eligibility
Under the Neonatal Care Leave and Miscellaneous Amendments Regulations 2025, employed parents are entitled to up to 12 weeks of neonatal care leave if their child:
- Is admitted for neonatal care within 28 days of birth.
- Remains in continuous care for seven or more days.
This leave is available from the first day of employment and, furthermore, the entitlement to neonatal care leave is in addition to existing parental leave rights. This means that the neonatal care leave will be added on top of any other parental leave entitlements, providing extended support during critical times.
- Notification requirements
Parents must inform their employers of their intention to take neonatal care leave. The specific notification procedures are outlined in the regulations, detailing how and when notice should be given.
- Statutory Neonatal Care Pay
Depending on employer size, the government may reimburse some statutory pay. The Statutory Neonatal Care Pay (General) Regulations 2025 outline the payment structure for eligible employees during neonatal care leave. Key points include:
- Employees must meet certain criteria, including a minimum length of service and earnings threshold, to qualify for statutory neonatal care pay.
- Eligible employees will receive the lesser of £187.18 per week or 90% of their average weekly earnings.
- Statutory neonatal care pay is available for up to 12 weeks, aligning with the duration of the neonatal care leave.
Challenges for employers
From 6th April, employers will undoubtedly face administration challenges as they strive to process and assess neonatal leave requests, as well as plug staffing shortages created by the entitlement to an additional 12 weeks of leave. Such cases will need to be handled carefully, to avoid the risk of a discrimination claim, necessitating a review of all parental leave policies and training to ensure all managers and HR teams are fully briefed.
Says Juliette Franklin: “Employers can ensure compliance with neonatal leave by creating clear, accessible policies that align with legal requirements, providing training to managers and HR staff, and fostering a supportive workplace culture that prioritises the health and well-being of new parents.”
She adds: “ Transparent communication and proactive support are key to ensuring both compliance and compassion.”
To ensure your payroll processes, policies, procedures and documentation are in compliance with the regulations ahead of the deadline on 6th April, please contact our Employment team.
