Introduction
On the 6 April 2025, Parliament published the Neonatal Care (Leave and Pay) Act 2023; adding to new legislation announced this year, the parents of babies who are in neonatal care are entitled to take additional time off work to spend with their child.
In this article we delve into the Neonatal Care Act, outlining who is eligible for the leave, what an eligible employee is entitled to, and the potential impact the new legislation will have on employers.
Eligibility
According to the statute, the right to neonatal care leave and pay is a day-one right for employees.
Any parent who has shared or sole responsibility for a child will be eligible; this includes the mother or birth parent of the child, the father, any employee married to, the civil partner of or partner of the mother or birth parent, adoptive parents and intended parents in a surrogacy.
Each eligible parent will be entitled a separate amount of leave (including parents who work for the same employer); parents will not be expected to split their leave as they would for shared parental leave.
The Neonatal Care Act also defines neonatal care as being care of a medical or palliative kind, and that starts within 28 days of the child’s birth.
If an employee satisfies all of these requirements, then they are entitled to neonatal care leave and pay.
Neonatal leave
Under the statute, parents can take between one and 12 weeks leave; their length depends on how long their baby is receiving neonatal care.
Parents receive one week of leave for each week their baby is in care (up to a maximum of 12 weeks), however the child must have been in care for at least seven consecutive days for this to apply.
If the parent has already booked statutory parental leave, then their neonatal leave can be added to the end of this.
An employee can take neonatal leave and pay in two ‘tiers’; tier one is for the period in which the child is receiving neonatal care (up to one week after the care has ended), and tier two is for the period following tier one, up until the end of 68 weeks from the date of the child’s birth.
The impact on employers
Whilst the introduction of neonatal leave is undoubtedly a great step forward in the support available to working parents, some professionals have raised concerns over the impact it will have on employers.
Elaine Huttley, partner and head of employment law at Irwin Mitchell has warned that the new legislation could cause some financial strain for employers. Employers must ensure they are paying in line with the Neonatal Care Act to avoid a claim of unpaid wages at an Employment Tribunal.
However, with employees taking potentially up to 12 weeks away from work, employers may also consider a temporary replacement to satisfy business needs; this would obviously have a financial impact on the employer as they put resources into finding and paying for a suitable temporary replacement.
Conclusion
To conclude, the introduction of the Neonatal Care (Leave and Pay) Act 2023 is a great step forward for working parents; having a child who is actively receiving hospital treatment is a very difficult time for parents. This legislation allows parents to take additional time away from work to care for their child.
Whilst the new statute may come with some financial strains for employers, it provides much-needed guidance on how these circumstances should be navigated. If employers acknowledge how difficult this time is for parents and offer support, the relationship between the employer and their employee will undoubtedly be strengthened.