Neonatal Care Pay and Leave: New Employee Rights in the UK from April 2025
Understanding the Pay and Leave Rights for Employed Parents
The Neonatal Care (Leave and Pay) Act 2023 introduced significant new rights for employees whose newborn's require neonatal care after birth. Taken effect in April 2025, these regulations will enhance support for working parents during critical early weeks with their babies.
Current and New Leave Provisions
The previous law entitled employed parents up to 39 weeks of statutory pay when pregnant and caring for a newborn child. However the statutory regime failed to take into account a child who needs neonatal care, particularly men who would quickly exhaust their entitlement to paternity leave. Parents would have to use annual leave entitlement or take sick leave and are often subject to the stress of choosing between keeping their jobs and looking after an unwell baby.
The Neonatal Care (Leave & Pay) Act 2023 received royal assent in May 2023 came into effect on 6th April 2025 and is estimated to positively impact around 60,000 new parents across the UK. Parents with a newborn in neonatal care will now be entitled to statutory pay, in addition to any other statutory family leave, giving them the vital time to focus on supporting their family.
Who is Eligible for the New Pay and Leave Rights?
Who is Eligible for the New Pay and Leave Rights?
Neonatal care, as defined under The Neonatal Care (Leave and Pay) Act 2023:
- Care of a medical or palliative care;
- Care that starts within the 28 days commencing the day after the child’s birth; and
- Care that lasts for 7 full days or more.
Employees must have qualifying parental or other personal relationship with the child born on or after 6th April 2025.
What Pay and Leave Rights Will You be Entitled To?
Leave Entitlement:
Alongside an employee’s maternity and paternity leave and pay rights, the new law grants eligible employees a day one right to take up to a maximum of 12 weeks leave on how long the child stays in care.
Pay Entitlement:
To qualify for neonatal pay, employee’s must be in continuous employment for 26 weeks and have earned at least the lower earnings limit (in 2024/25, this is £123 a week) for the last 8 weeks.
Pay is the same as statutory paternity pay or shared paternal pay (in April 2025 this will be £187.18 per week) for a maximum of 12 weeks.
The threshold of rates are expected to be revealed in the approved regulations in April 2025, this is because different types of rates may be applicable indifferent circumstances.
Responsibilities the Act Imposes on the Employer
How to Prepare
Employees will have additional rights such as right to return to the same job and not to suffer detriment for taking leave. This will mean greater responsibility for employers who need to understand and integrate these rights into their workplace. Ultimately employers:
· Review employment contracts and policies and ensure employees are informed of their new rights;
· Ensure HR and payroll systems are aware and trained to deal with the new rules;
· Implement a clear process for employees to apply for neonatal care leave
· Understand how new neonatal care rules interact with existing family rules
It is vital that employers update workplace practices with current employment law changes to avoid claims of unfair treatment by employees.
Acumen Law is proud to support your business and offer legal services to ensure your company is up to date and compliant, not only for the Neonatal Care (Leave& Pay Act) 2023 but any new employment laws.
For expert assistance in preparing for these changes, contact our employment team for specialised advice on all areas of employment law.
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