Neonatal Care Leave: what HR needs to know | Moorepay
February 27, 2023

Neonatal Care Leave: what HR needs to know

According to the charity Bliss, around 1 in 7 babies born in the UK are admitted to neonatal units each year.

For parents, this can be an overwhelming and distressing time – one that brings not only emotional strain but also practical and financial challenges. As a mother of twins, I recall how my boys narrowly missing the need to be treated on the neonatal ward, as one twin was born breech and just 20g over what would be considered a low birth weight.

The new Neonatal Care Leave and Miscellaneous Amendments Regulations 2025 come into effect on 6th April this year (2025). It applies to all biological parents, adopters, or those with primary care responsibilities of babies who require neonatal care. Designed to support working parents, this new entitlement ensures they can take time away from work without added financial pressure, offering up to 12 weeks of additional paid leave for those caring for babies in neonatal care.

What do you need to know?

The Neonatal Care (Leave & Pay) Act 2023 and supporting legislation applies to the parents of a child born on or after the 6th April 2025 in England, Scotland and Wales, regardless of length of service. It will not apply to those in Northern Ireland; however, this may be introduced at a later date. Although the entitlement the Neonatal leave is a day one right, there is an eligibility criterion that needs to be met to qualify of Statutory Neonatal Care Pay (SNCP)

Neonatal Care Leave

The leave applies if a baby requires at least 7 consecutive days of neonatal care within the first 28 days after birth. The first day of care starts the day after the baby has first received neonatal care. The minimum period of neonatal care leave is 1 week, while the maximum period of neonatal care leave is 12 weeks but is dependent on how long the baby receives care for. This will work on a 2-tier system:

  • Tier 1 period: This begins when the child starts receiving neonatal care and ends on the 7th day after the child stops receiving neonatal care (post discharge). There is minimal notice required, and it doesn’t need to be in writing and can be taken in non-continuous blocks of at least one week.
  • Tier 2 period: This is more planned leave and can commence from the 2nd week post discharge up to 68 weeks after birth. It must be taken in one continuous block and requires formal notice in writing from the employee.

Whilst on Neonatal care leave, employees retain all employment protections, including the right to return to the same role, mirroring other family-friendly leave entitlements.

Statutory Neonatal Leave Pay (SNCP)

Unlike the leave, SNCP is not a day one right. To qualify the employee must:

  • Meet all the neonatal care leave requirements
  • Have at least 26 weeks of service up to the end of the ‘relevant week’
  • Have average earning of at least the lower earnings limit (£125 per week for 2025/26).
  • Provide notice and the medical evidence of neonatal care.

What can we do to prepare?

Becoming a parent can be overwhelming at the best of times. However, if the baby requires neonatal care, it becomes a very difficult and potentially traumatic time for working parents. The leave allows them to spend this vital time with their baby without feeling pressures of returning to work. As such, business will need to be thoroughly prepared by ensuring policies and procedures are up to date, as well as ensuring our HR teams and managers are fully trained.

Ensure the process for requesting neonatal leave is clear and simple

If your business offers enhance payments for other family-friendly leave entitlements, consider extending this benefit to neonatal care pay. Some parents may opt to end maternity leave after 39 weeks (when Statutory Maternity Pay stops) and move onto Neonatal Care Leave with SNCP for 12 additional weeks – meaning almost a full year of paid leave (albeit at statutory rates). This could present a significant cost implication for businesses offering enhanced pay.

Understand the tier system

There is complexity in determining what level of notice will apply and whether the employee falls within tier 1 or tier 2. Employers have the option of waiving notice requirements, and many may choose to do so in order to reduce distress on their employees in an already difficult circumstance.

Consider the long-term effects

The longer-term effects of a baby spending time in a neonatal intensive care unit could manifest themselves both physically and mentally, possibly resulting in a long-term condition or illness. Employers will need to be mindful of this in the event of a change in an employee’s performance, behaviour or attendance. Caution should be taken when addressing sickness absences or request for time off, being mindful of potential disability or associative discrimination risks.

Finally, as HR professionals and managers we should recognise the emotional and financial strain this can have on the employee and train to handle leave requests sensitively, and with compassion.

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jeanette branagan
About the author

Jeanette Branagan

An HR/Employment Law Advisor, Jeanette has been involved in HR for over 10 years. She started out as a standalone HR and Payroll Officer for a manufacturing company. After 6 years, she chose to move to the HR advisory service to offer a personal service and support to small and medium business across all sectors. With this in mind, Jeanette provides a wealth of knowledge and pragmatic advice in a clear and simple way to assist clients achieve their aim whilst minimising risk and disruption. The client and their business needs are always at the heart of Jeanette’s advice.

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