From 6 April 2025, employed parents will have a new right to neonatal care leave and pay, provided by the Neonatal Care (Leave and Pay) Act 2023 which was passed as law under the previous government.

This new right can be exercised in addition to other forms of family or parental leave/pay, such as maternity and paternity leave/pay. Employees will be able to avoid having to use these forms of leave, or having to make the difficult decision to return to work while their baby remains in neonatal care.

Employees will be entitled to take neonatal care leave from the first day of their employment and will be able to take leave for at least a week and up to 12 weeks. The following conditions must apply:

• They have a parental or other personal relationship with the baby.
• Neonatal care is medical/palliative care (to be specified in regulations) and which must start within 28 days of the baby’s birth.
• The neonatal care must continue for at least seven days.
• The leave must be taken within 68 weeks of the baby’s birth.

Employees will also be entitled to neonatal care pay at a prescribed rate and the required conditions, which mirror those for maternity pay, are as follows:

• They have at least 26 weeks continuous employment with their current employer.
• They are earning at least the weekly lower earnings limit (currently £123).

Employers should update their current written policies and practices to reflect these new entitlements. For those employers that do not have a written policy due to the size of the business, you need to be aware of this new right. You should also be mindful that the current government seeks further expansion of family leave rights through the Employment Rights Bill which continues to pass through the legislative process and is currently at the report stage in the House of Commons. This includes making parental and paternity leave a day-one right, allowing employees to take paternity leave following shared parental leave and strengthening protection from dismissal following a period of family leave.

If you wish to discuss this or any of the other family friendly provisions, please contact the Employment Team.