The Government has laid before Parliament the Neonatal Care (Leave and Pay) Act 2023 (‘the Act’) introducing a new day-one right to neonatal leave for working families with babies in neonatal care. Subject to Parliamentary approval, neonatal care leave will apply in respect of children who are born on or after 6 April 2025.

Currently, parents of newborn babies requiring neonatal care have to depend on their employer’s discretionary support or statutory leave, such as maternity and paternity leave.

The Act introduces a dedicated entitlement for neonatal care leave and pay. The provisions will apply to employed parents whose babies are admitted into neonatal care within the first 28 days of life, and who have a continuous stay in hospital of at least 7 full consecutive days.

These measures will allow eligible parents to take up to 12 weeks of leave on top of any other leave they may be entitled to, including maternity, paternity and shared parental leave.

Eligible parents will be able to take neonatal care leave in blocks of a week, for each week their baby is in hospital, up to a maximum of 12 weeks. The leave must be taken within 68 weeks of the child’s birth.

Alongside the leave entitlement, Statutory Neonatal Care Pay will be available to those who meet continuity of service requirements and minimum earnings threshold. The right to neonatal care leave will be a day-one right, but employees will only be entitled to statutory neonatal care pay if they have 26 weeks’ service.

Employees who take neonatal care leave will have the same employment protections as those associated with other forms of family leave (such as maternity or paternity leave). These include protection from dismissal or detriment as a result of taking the leave.

Employers should take steps to prepare for the introduction of neonatal care leave and pay, including:-

· Reviewing and updating their policies to reflect the new entitlements;

· Ensuring payroll systems can accommodate neonatal care pay calculations;

· Providing guidance to employees who may need to take neonatal leave; and

· Training managers and HR to understand the new rights so they can handle requests appropriately.

Please contact us if you would like more information about the issues raised in this article or any other aspect of employment law at 029 2034 5511 or employment@berrysmith.com.