Legislation Update: Neonatal Care Leave and Pay April 2025

Legislation Update: Neonatal Care Leave and Pay April 2025  

The new statutory right to Neonatal Care Leave (NCL) and pay will come into force in the next few weeks, providing vital support for employees whose babies require specialist neonatal care after birth. To qualify, the baby must have been born on or after 6 April 2025. The new right aims to allow parents time, outside of maternity, paternity or shared parental leave, to bond and care for their baby whilst they are receiving neonatal care. 

Who is eligible and what will they receive? 

Under the new legislation, eligible employees will have a ‘Day 1’ right to be able to take up to 12 weeks of paid Neonatal Care Leave if their baby requires “neonatal care” for at least seven consecutive days within the first 28 days of birth. This leave is in addition to existing maternity, paternity, and shared parental leave entitlements. The leave must be taken before the end of 68 weeks beginning with the date of birth and must be to care for the baby (unless the baby dies, or an adoption placement ceases).  

There are three categories of medical care which will count as “neonatal care”: 

• Any medical care received in a hospital.
• Medical care received elsewhere following discharge from hospital. Such care must be under the direction of a consultant and includes ongoing monitoring and visits to the child by healthcare professionals; or 
• Palliative or end of life care. 

The entitlement is capped at 12 weeks and is taken in 1 week blocks in respect of each week their baby receives neonatal care without interruption. 

To be entitled to Statutory Neonatal Care Leave Pay (SNP) employees must have at least 26 weeks of service and meet the minimum earnings threshold to qualify for statutory neonatal pay, which will be aligned with the statutory maternity and paternity pay structure. Those who do not meet the earnings criteria may still be eligible for unpaid leave.  

What notice will be required? 

To provide flexibility in who can take the leave and when, a tiering system has been introduced with differing notice requirements: 

• Tier 1 – Reflects the period that leave can be taken whilst the baby is in neonatal care or up to 7 days after neonatal care ends. This tier can be taken in non-consecutive blocks of 1 week. This tier of leave is likely to be taken by the baby’s father, mother’s partner or secondary adopter. Notice for this tier must be given before the first day of absence or as soon as reasonably practicable. 
• Tier 2 – Reflects the period that leave can be taken in the remaining 68 week period, where leave must be taken in one continuous block. Notice for this tier requires 15 days' notice for a single week of leave or 28 days' notice for 2 or more consecutive weeks. 

Employees must give the relevant tier notice of taking leave, confirming certain information such as the child’s date of birth, the start and end date of neonatal care, how much leave they want to take and confirmation that they are eligible for leave and are taking it to care for their child. However, as a School or Trust, you can agree to waive the notice requirements. 

Considerations 

Timing: An employee will generally take NCL at the end of their other parental leave entitlement (unless interrupted). Whilst the underlying intention is to extend the overall period of leave that can be taken, employers may find that some eligible employees choose to end their maternity leave once statutory maternity pay ends at 39 weeks and then move to NCL for 12 weeks. This would allow for almost a whole year of paid leave (albeit at statutory rates for schools and trusts who do not enhance).  

Notice: There is complexity in determining what level of notice will apply and whether the employee falls within tier 1 or tier 2. As employers have the option of waiving notice requirements, many employers may choose to do so in practice, particularly for employees who are not taking/have already taken other forms of leave e.g. maternity leave. 

Policies: Schools and Trust’s will need to have a clear policy setting out the statutory right to leave and pay or incorporate this into an existing family friendly leave policy, as well as any enhanced rights. Schools and Trust’s should consider creating a template form for employees to complete for notice requirements. If a School or Trust decides to offer enhanced family leave, it will be necessary to think through the impact of NCL on any of these enhancements.  

Redundancy: Schools and Trust’s will need to add employees taking NCL of over 6 weeks to the groups of employees who will be entitled to priority status in the event of a redundancy. As the protection continues until the child turns 18 months, it will be important to consider tracking employees who take this type of leave in the same way as other types of parental leave.  

Absence management: Effects of traumatic birth or 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. Schools and Trust’s should be mindful of this in the event of a change in an employee’s performance, behaviour or absence. Approach requests for time off or increased sickness leave carefully, bearing in mind the potential disability discrimination risks. 

What are the next steps? 

For Schools and Trusts, the change requires updates to HR policies and payroll systems to accommodate statutory neonatal care leave and pay entitlements. Schools and Trusts should have reviewed and amended their current family leave policies to ensure compliance ahead of the legislation coming into force on 6 April 2025. Additionally, it is essential to communicate these changes effectively to staff and provide training for line managers on how to implement the new policy.