Neonatal leave and pay

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Day-One Leave Entitlement

  • There is no minimum length of service required – all employees who meet the criteria for Neonatal Care Leave (NCL) will be eligible from their first day of employment.
  • NCL is different from Statutory Neonatal Care Pay (SNCP), which requires 26 weeks of continuous service and a minimum earnings threshold.

Up to 12 Weeks of Additional Leave

  • Employees whose newborns are admitted to neonatal care within the first 28 days of life for a continuous stay of seven full days or more can take up to 12 weeks of leave per parent.
  • This is in addition to other statutory entitlements, such as maternity, paternity, adoption, or shared parental leave. This ensures that time spent in neonatal care does not reduce the standard parental leave available.
  • SNCL is categorised into two tiers:
    • Tier 1 period begins while an employee’s child is receiving neonatal care, or within seven days of them ceasing to receive neonatal care and leave taken in this period can be taken in non-consecutive blocks of a minimum of one week.
    • Tier 2 period begins more than seven days after the child has stopped receiving neonatal care, and the leave must be taken in one continuous block.
  • Notice requirements differ between Tier 1 and Tier 2, with minimal notice being required for the Tier 1 Period.

Statutory Pay Obligations

  • Employees with at least 26 weeks of continuous service and who meet the minimum earnings threshold will qualify for SNCP.
  • The statutory rate for SNCP is set at £187.18 per week (from April 2025) or 90% of the employee’s average weekly earnings, whichever is lower.

Protection against Unfair Treatment

  • Employees taking NCL will have the right not to suffer detriment for doing so.
  • Employers should ensure that managers and HR teams understand that dismissing or treating an employee unfairly for taking NCL could lead to Employment Tribunal claims.

Practical Steps for Employers

  1. Update HR Policies
  • Ensure your policies reflect the new entitlement, including eligibility criteria, notification requirements, and how NCL interacts with other types of leave.
  • Communicate the changes clearly to employees.
  1. Prepare for Workforce Planning Challenges
  • With up to 12 weeks of additional leave per parent, businesses need to consider how to cover absences, particularly in small teams.
  • Employers may need to implement temporary cover strategies or cross-training to manage workloads effectively.
  1. Payroll and Administrative Updates
  • Update payroll systems to handle SNCP calculations and payments.
  • Ensure managers are aware of the process for handling leave requests and verifying eligibility.
  1. Manager and HR Training
  • Provide training to line managers and HR teams to ensure they handle NCL requests fairly and consistently.
  • Emphasise the importance of compassion and compliance when supporting employees through challenging personal circumstances.

Why This Matters for Employers

This new entitlement is a significant change in employment law and reflects a growing focus on family-friendly workplace policies. Employers who proactively prepare, support affected employees and ensure compliance will not only avoid legal risks but also foster a more inclusive and supportive workplace culture.

Employers should review their policies now and be ready for the April 2025 implementation to avoid last-minute challenges.