A new UK statutory entitlement giving parents up to 12 weeks of paid leave when their baby requires neonatal care in hospital within the first 28 days of birth, effective from April 2025.
Key Takeaways
Before this legislation, parents of premature or seriously ill babies faced an impossible situation. A father's 2 weeks of paternity leave would run out while the baby was still in intensive care. Mothers on maternity leave watched their 39 weeks of pay tick down during months of hospital visits, leaving less paid time for when the baby finally came home. Neonatal care leave fixes this gap. It gives parents dedicated time to be with their baby during hospital treatment without eating into their other leave. The Neonatal Care (Leave and Pay) Act 2023 received Royal Assent in May 2023, and the regulations bringing it into force take effect from 6 April 2025. For HR teams, this means updating policies, payroll systems, and manager guidance before that date. It's the biggest addition to UK family leave rights since shared parental leave in 2015.
The entitlement triggers when specific conditions about the baby's care are met.
Neonatal care leave applies when a baby is admitted to neonatal care within 28 days of birth and the care lasts for 7 or more continuous days. "Neonatal care" means medical care received in a hospital setting, including neonatal intensive care units (NICU), special care baby units (SCBU), and transitional care wards. The leave doesn't apply if the baby is simply kept in hospital for routine observation after a normal birth.
Both the birth mother and her partner can take neonatal care leave, provided they're employees. The partner doesn't have to be the biological parent; they need to have or expect to have responsibility for the child's upbringing, or be the partner of the birth parent. Agency workers, self-employed individuals, and workers who aren't employees don't qualify for the statutory leave, though some employers may extend similar rights in their policies.
The right to leave is a day-one right. The right to pay has additional requirements: 26 weeks of continuous employment by the relevant week, and average weekly earnings at or above the Lower Earnings Limit. Statutory neonatal care pay is paid at the same rate as other statutory family pay (currently 184.03 per week or 90% of average weekly earnings, whichever is lower). Employers who don't meet the pay criteria still must grant the unpaid leave.
The mechanics of neonatal care leave are designed to be flexible, recognizing that neonatal care situations are unpredictable.
Parents accrue one week of neonatal care leave for each week (or part-week) that the baby receives neonatal care, up to a maximum of 12 weeks. If the baby is in neonatal care for 8 weeks, each parent is entitled to 8 weeks of neonatal care leave. If the care extends to 15 weeks, the entitlement is capped at 12 weeks per parent.
The leave is split into two tiers. Tier 1 leave can be taken during the neonatal care period itself, on short notice, in blocks of at least one week. Tier 2 leave covers any remaining entitlement and must be taken within 68 weeks of the baby's birth (or placement for adoption). Tier 2 leave requires longer notice and must be taken in whole weeks. This structure lets parents take time off during the hospital stay and save remaining leave for after the baby comes home.
For Tier 1 leave (during the neonatal care period), employees only need to give notice before their first day of absence. The regulations recognize that neonatal admissions are unplanned. For Tier 2 leave (after neonatal care ends), employees must give at least 15 days' notice for a single week of leave, or 28 days' notice for blocks of 2 or more weeks. These periods can be varied by agreement between employer and employee.
One of the most important features is that neonatal care leave sits on top of existing entitlements. Here's how it interacts with each type.
| Leave Type | Interaction with Neonatal Care Leave | Key Point |
|---|---|---|
| Maternity leave | Neonatal care leave is in addition to 52 weeks of maternity leave | Mothers on maternity leave can pause it, take neonatal care leave, then resume maternity leave |
| Paternity leave | Neonatal care leave is in addition to 2 weeks of paternity leave | Partners can take paternity leave and neonatal care leave separately or consecutively |
| Shared parental leave | Neonatal care leave is in addition to SPL entitlement | SPL curtailment calculations aren't affected by neonatal care leave taken |
| Adoption leave | Applies to adoptive parents if the child requires neonatal care within 28 days of placement | Same 12-week maximum applies |
| Annual leave | Continues to accrue during neonatal care leave | Employees can't be required to use annual leave instead of neonatal care leave |
These numbers show the scale of the issue and why this legislation was needed.
April 2025 is the deadline. Here's what HR teams need to do before then.
The protections mirror those for other family leave types.
Employees are protected against any detriment for taking or requesting neonatal care leave. This includes being overlooked for promotion, receiving a poor performance review because of absence, or being selected for redundancy because of the leave. The protections apply during the leave and after the employee returns.
Employees have the right to return to the same job after neonatal care leave. If returning to the same job isn't reasonably practicable (for example, after a long period combining neonatal care leave with other family leave), the employee must be offered a suitable alternative role on no less favorable terms. During any redundancy process, employees on neonatal care leave have priority for suitable alternative vacancies, similar to the protection during maternity leave.
Dismissing an employee for taking or requesting neonatal care leave is automatically unfair. There's no qualifying service period for this claim, meaning even new employees can bring an unfair dismissal claim if the reason was connected to neonatal care leave. Employers should document carefully that any dismissal during or shortly after neonatal care leave is genuinely unrelated.