Previously, parents facing neonatal treatment had to rely on annual leave or parental leave to care for their baby, adding to the emotional and financial strain. This new legislation grants specific neonatal care leave, helping parents manage both personal and professional responsibilities more effectively.

Perks for Parents

One of the most noteworthy changes, which could be actioned as early as April 2025, is the introduction of up to 12 weeks of neonatal care leave. Parents can take this leave as well as their existing maternity, paternity, or shared parental leave. It applies if the baby requires medical or palliative care for at least 7 consecutive days within the first 28 days of birth. Better still, this entitlement is a day-one right, meaning it’s available to employees from the very start of their job. Great news for all new hires facing unexpected medical challenges with their babies.

A further change the Act introduces is statutory neonatal care pay. For this, employees must have at least 26 weeks of service under their belts and have earnings averaging £123 per week. Parents may accept this pay over the 12-week leave period.

Employment Rights and Protections

Employees taking neonatal care leave have the protections of other family-related leave, including protection from detriment and discrimination. Employers play a crucial role in supporting families of their workforce. By updating leave policies and ensuring clear communication about these new rights, employers will not only ensure compliance with the law but also achieve a positive and inclusive environment that supports employees during potentially difficult times.

For employers, the Neonatal Care (Leave and Pay) Act 2023 brings several practical implications. Firstly, parents may opt to extend their time off by transitioning from maternity leave to neonatal care leave once their statutory maternity pay concludes at 39 weeks.This could extend their paid leave to almost a year, although at statutory rates, unless the employer offers enhanced pay.

With up to 12 weeks of paid leave per parent, the new law allows fathers and partners greater flexibility to share caregiving duties, extending their paid leave beyond the standard 2 weeks of paternity leave. It also complements Shared Parental Leave, offering additional flexibility so both parents can focus on their child and family during that crucial time after birth.

It’s also important to know the distinction between leave and pay rights. Neonatal care leave is a day-one right, available immediately to all employees. However, statutory neonatal pay requires 26 weeks of service, meaning not all employees will qualify for pay while on leave.

In summary, the Neonatal Care (Leave and Pay) Act 2023 represents a crucial advancement for parents of newborns requiring neonatal care. This legislation alleviates the emotional and financial pressures families face during difficult times by providing dedicated support. Employers play a key role in implementing these changes, ensuring that policies are updated and communicated effectively. Ultimately, this law enables parents to prioritise their child’s health while balancing their professional responsibilities and creating a supportive work environment.

Need help updating your leave policies to comply with the new legislation? Contact our team of HR Specialists for expert advice and support.