New Neonatal Care Leave: What Business Owners Need to Know

From 6 April 2025, parents of babies requiring neonatal care will benefit from a new statutory entitlement under UK law. The Neonatal Care Leave and Pay provision aims to support families during challenging times, offering up to 12 weeks of additional leave for employees whose newborns need specialised medical attention.

This change will impact employers across all industries, requiring updates to existing policies and processes. Here’s what business owners need to know to prepare effectively.

What Is Neonatal Care Leave?

Neonatal Care Leave is a new legal right designed to support parents of babies who require extended hospital care immediately after birth. It applies to infants admitted to neonatal care within the first 28 days of life for a continuous period of seven days or more.

Employees will have the right to take up to 12 weeks of Neonatal Care Leave on top of their existing maternity, paternity, and shared parental leave entitlements. This additional time ensures parents can focus on their family without worrying about returning to work too soon.

Key Features of Neonatal Care Leave

1. Day-One Right: Employees will be entitled to Neonatal Care Leave from their first day of employment. This ensures all new employees can access this vital support, regardless of how long they have been with the organisation.
2. Statutory Neonatal Care Pay: Employees meeting the required length of service (26 weeks) and minimum earnings criteria will qualify for statutory pay during their Neonatal Care Leave period. The statutory rate for 2025 will be announced closer to the time.
3. Protection Against Discrimination: Employees who take Neonatal Care Leave will be legally protected from any form of disadvantage or dismissal related to their absence.

What Does This Mean for Business Owners?

As this entitlement becomes law, employers need to take proactive steps to ensure compliance and minimise disruption. Below are the main areas to address:

1. Update Your Policies

Review and revise your current HR policies to include Neonatal Care Leave and Pay. Clearly outline eligibility, the process for requesting leave, and the company’s approach to supporting affected employees. Include these changes in your staff handbook to ensure clarity and transparency.

2. Train Your HR Team and Managers

Equip your HR team and managers with the knowledge to handle requests for Neonatal Care Leave sensitively and efficiently. Consider running training sessions to address common questions and scenarios, ensuring consistency in how requests are managed.

3. Plan for Staffing Challenges

Extended absences may create temporary gaps in your workforce. Evaluate your business continuity plans and explore options such as temporary staff or flexible working arrangements to ensure operational stability while supporting your employees.

4. Communicate with Employees

Proactively share information about the new entitlement with your workforce, even before the official implementation date. Open communication builds trust and demonstrates your commitment to employee wellbeing.

Why Is This Change Important?

The government introduced Neonatal Care Leave to address the emotional and financial strain many families face when their baby requires extended hospitalisation. Research shows that parents often use annual leave or unpaid time off to care for their child, which can lead to added stress.

By supporting this initiative, businesses can enhance their reputation as family-friendly employers, fostering loyalty and attracting top talent in a competitive labour market.

Next Steps for Employers

Preparing for Neonatal Care Leave requires more than ticking a compliance box. It’s an opportunity to create a supportive workplace culture that prioritises employee wellbeing.

To get started:

• Conduct a review of your parental leave policies.
• Communicate with employees about the upcoming changes.
• Seek guidance from Neathouse Partners Ltd experts to ensure compliance with the new rules.