Zhoosh have designed this handy guide to help HR professionals navigate the new legal requirements, update policies, and ensure a smooth transition that supports your employees during one of life’s most challenging times.
Understanding the New Legislation
The Neonatal Care (Leave and Pay) Act 2023 is a welcome addition to the UK’s family-focused employment rights. It aims to alleviate the financial and emotional strain on parents whose newborns need specialised medical care. By providing a defined period of paid leave, the Act enhances employee wellbeing and reinforces a compassionate workplace culture.
What Does the Act Provide?
- Day-One Right: employees will be eligible to take the leave from their first day of employment.
- Paid Leave: Starting on 6 April 2026, eligible. Employees can take up to 12 weeks of neonatal care leave. This leave is in addition to existing maternity, paternity, and shared parental leave.
- Flexible Timing: Employees can take this leave at any point within 68 weeks of the baby’s birth, offering them the flexibility to address their unique needs.
- Statutory Neonatal Care Pay (SNCP): Employees who meet the leave eligibility criteria and have completed 26 weeks of continuous service will also receive SNCP. Provided the employee meets the lower earnings limit, payment levels will align with other statutory payments.
Key Details for HR Professionals
Who Is Eligible?
The Act applies to:
- Babies Born On or After 6 April 2025
- Parents of Babies in Neonatal Care: Any parent whose baby is admitted to neonatal care within the first 28 days of birth for at least seven continuous days. The first period of 7 days will begin the day after the baby first accesses neonatal care (i.e. days 2-8 of neonatal leave)..
- Inclusivity of Parental Types: This entitlement extends to biological parents, adoptive parents, and intended parents in surrogacy arrangements.
Leave Entitlement
- Duration: Up to 12 weeks of leave specifically for neonatal care. Neonatal care leave must be taken in blocks of a week.
- Additional Leave: This leave is provided on top of any existing maternity, paternity, or shared parental leave.
- Flexibility: Under the Tier rules outlined below, leave can be taken within the first 68 weeks after the baby’s birth.
Categories of Neonatal Leave
- Tier 1 Period Leave covers leave taken while your baby is still receiving neonatal care and for up to one week after discharge. This leave can be taken in flexible, non-continuous blocks, with at least one week per block. The Tier 1 period ends on the seventh day after your baby is no longer receiving neonatal care.
- Tier 2 Period Leave applies to any additional leave beyond the Tier 1 period. It must be taken as a single, continuous block, and there is no option to split or take multiple periods of Neonatal Care Leave during this time.
*Please note: While the legislation does not formally divide the leave period into tiers, our guide uses these terms to clarify how leave may be taken in different stages.
Definition of Neonatal Care
Draft regulation 4 defines Neonatal Care as;
- Medical care received in a hospital
- Medical care received in any other place that meets the following criteria;
- The child was an inpatient, and care was received upon the child’s leaving the hospital.
- The child’s care is under the direction of a consultant; and
- The care includes ongoing monitoring and visits to the child, from the healthcare professionals that the hospital has arranged.
- Palliative or end of life care.
HR Action Plan
To ensure a seamless integration of the Neonatal Care (Leave and Pay) Act 2023 into your organisation, consider the following action steps:
1. Update Your Policies
- Review and Revise: Audit your current family leave policies to ensure they incorporate the new entitlement. Update your employee handbook and internal communications.
- Legal Compliance: Consult legal experts to verify that all policy changes align with the latest legislative requirements.
2. Prepare Your Payroll Systems
- System Adjustments: Update your payroll software to correctly calculate and process Statutory Neonatal Care Pay.
- Training: Provide payroll and HR teams with training to ensure they understand the nuances of the new payment structure, including service requirements and the lower earnings limit.
3. Communicate with Your Employees
- Inform and Educate: Roll out clear communications that explain the new leave entitlement and pay provisions. Use multiple channels—emails, intranet updates, and team meetings—to ensure the message reaches everyone.
- Support Resources: Create FAQs and resource guides to help employees understand their rights and how to apply for neonatal care leave.
4. Monitor and Review Implementation
- Feedback Mechanism: Establish a process for collecting employee feedback on the new policies to help identify any areas of confusion or delay.
- Continuous Improvement: Use feedback to refine processes and improve support systems, ensuring the new benefits effectively meet your employees’ needs.
The Bigger Picture: Building a Compassionate Workplace
Implementing the Neonatal Care (Leave and Pay) Act 2023 isn’t just about ticking compliance boxes—it’s an opportunity to demonstrate your company’s commitment to supporting employees during life’s most critical moments.
By proactively preparing for these changes, you can ensure that your organisation meets compliance requirements and reinforces its reputation as a compassionate, forward-thinking employer.
