FAQs on new right to neonatal care leave and pay: What do employers need to know?

What is “neonatal care”?

“Neonatal care” is care which begins within the first 28 days of the baby’s life (starting from the day after the baby is born) which lasts for at least seven continuous days (starting the day after care starts); and which is:

1. any medical care received in a hospital;
2. medical care received elsewhere following a hospital discharge (such care must be under the direction of consultant and includes ongoing monitoring by healthcare professionals); or
3. palliative or end of life care.

Do employees have to have a minimum service requirement to benefit from the new right?

It is a day one right to take the leave.

However, there is a requirement to have 26 weeks’ continuous employment to be eligible for the statutory neonatal care pay.

Who can take the leave?

Employees who, as at the birth of the baby (which must be on or after 6 April 2025), are one of:

• the baby’s parents;
• the baby’s intended parents (i.e. this will be relevant in surrogacy situations); or
• partner to the baby’s mother (who are unrelated and living with them in an enduring family relationship) with the expectation that they will have responsibility for raising the child.

Similar principles apply in cases of adoption.

When can leave be taken?

Leave must be taken within 68 weeks of the baby’s birth (or placement or entry to Great Britain in adoption cases). This aligns with the idea that it can be added onto the end of an employee’s family leave, as it’s likely that a parent will already be on maternity, paternity or other leave when the baby is placed in neonatal care. Accordingly, the employee can tag the neonatal leave onto the end of such family leave, so that they do not see an overall reduction in their amount of maternity, paternity, shared parental leave etc.

The leave is split into two tiers, depending on when the leave is taken.

• Tier 1: If the leave is taken whilst the baby is receiving care and up to a week post discharge from care, this is a “Tier 1 period”. It can be taken in non-continuous blocks of a minimum one-week block at a time.In practice, it is most likely that fathers or partners who are not taking primary maternity or adoption leave, will take this leave during a Tier 1 period. As the mother or primary adopter will be on maternity or adoption leave.
• Tier 2: Any other neonatal care leave that falls outside of the Tier 1 period and within 68 weeks of the baby’s birth, will be considered “Tier 2 period” and must be taken in one continuous block.

What notice needs to be provided by the employee?

An employee must give notice to their employer of their intention to take statutory neonatal care leave specifying:

• Their name.
• The baby's date of birth and, in adoption cases, the date of placement or the date the baby entered Great Britain.
• The date or dates the baby started to receive neonatal care.
• If the baby is no longer receiving neonatal care, the date such care ended.
• The date on which the employee chooses the period of statutory neonatal care leave to begin. (Note that if the employee is already at work and they want leave to start immediately during a Tier 1 period, it will start on the next day).
• The number of weeks of statutory neonatal care leave the notice is being given for.
• That the employee is taking the leave to care for the baby.
• If it is the first notice of statutory neonatal care leave in respect of that baby, confirmation that the employee meets the eligibility requirements as to family relationship with the baby.

Different notice periods are required depending on whether it is a Tier 1 period or a Tier 2 period. Employers and employees can also agree to waive the notice requirements – and given the complexity of the system and nature of the leave, many employers may choose to do this.

Who is eligible for pay?

Employees must be eligible to take the leave (see details in the question above “Who can take the leave?”) together with the additional requirements that:

• An employee’s earnings must average at least the lower earnings limit (£125 from 6 April 2025); and
• The employee must have been employed continuously for at least 26 weeks by the “relevant week”. 

The “relevant week” means:

• In birth cases, the 15th week before the expected week of childbirth.
• In adoption cases, the week in which the adopter is notified of being matched with the child for the purposes of adoption.
• In any other case, the week immediately before the week in which the neonatal care starts.

What is the rate of pay?

The statutory rate for neonatal leave pay is £187.18 per week from 6 April 2025.

What protections are employees afforded if they do take this leave?

The same employment protections apply as for other types of family friendly leave, at a high level these include:

• retention of employment terms and conditions during leave (excluding remuneration)
• right to return to original role (or suitable and appropriate alternative roles in certain circumstances)
• protection against dismissal for taking or seeking to take the leave
• protection against detriment for taking or seeking to take the leave
• enhanced redundancy protection rights (i.e. right to be offered a suitable alternative vacancy applying from day after the employee has taken six consecutive weeks of leave and ending on day after the child turns 18 months old)

Next steps

What should employers do next?

• Review and update policies:
  Employers should review any existing policies to update them accordingly to reflect this new right. 
  
  Employers should also consider introducing new policies setting out the new right to leave and pay as well as any enhanced schemes that they are offering.
  
   
• Establish procedures:
  Create processes to deal with this new right: Consider the workflow of how requests and notice will be dealt with. Consider introducing template forms to deal with the notice requirements and assist those making such an application at what will be a difficult time for them.
   
• Training:
  HR teams should consider providing training on the new right given the complexities of the legislation including notice requirements and employee protections. We can assist with this, please do get in touch.
   
• Staff communications:
  Consider any communications or announcements in relation to the new right.  Consider engaging relevant staff networks to assist with this.

If you have any questions on the contents of this alert or on the new legislation, please get in touch with Paul Reeves, Leanne Raven or your usual Stephenson Harwood contact.