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New neonatal care leave and pay rights confirmed by the Government

The Government has confirmed that from 6 April 2025, eligible employees will gain a statutory right to neonatal care leave and pay.

This long-awaited reform, introduced under the Neonatal Care (Leave and Pay) Act 2023 (the Act), aims to support parents during an intensely challenging period.

For employers, preparing for this change will ensure compliance and help maintain positive relationships with staff.

The new entitlement at a glance

Neonatal care leave will allow eligible employees to take up to 12 weeks of leave (in addition to existing maternity, paternity, or shared parental leave) if their baby requires neonatal care. The entitlement applies where:

The baby is admitted into hospital within 28 days of birth.
The hospital stay lasts 7 full days or longer.

This leave will be a day-one right, meaning employees can access it from the start of their employment.

Statutory neonatal care pay (subject to eligibility criteria) will also be available, mirroring the structure of other family-related pay schemes.

What will these new rights mean for employers?

Consistency in workforce planning

The statutory framework offers clarity for managing neonatal leave, reducing reliance on informal arrangements such as unpaid leave or annual leave requests.

Boosting staff retention

Demonstrating support during difficult times can promote loyalty, helping retain employees who value employers with compassionate policies.

Mitigating legal exposure

Non-compliance risks tribunal claims, including discrimination allegations. Proactive updates to policies and training will be vital.

Timeline and steps for preparation

While the rules take effect in April 2025, employers should begin preparations now by:

Revising policies – Incorporate neonatal care leave into existing family-friendly policies, outlining eligibility, notice periods, and pay structures.
Training HR teams and managers – Equip staff to handle requests with sensitivity and consistency, avoiding missteps during emotionally charged situations.
Adjusting payroll systems – Ensure systems can accommodate statutory neonatal care pay (aligned with rates for other family-related pay) and track leave accurately.

Supporting staff while managing operations

With an estimated 60,000 parents benefiting annually, this reform will impact many workplaces. Employers should balance empathy with practical needs by:

Planning cover – Cross-train teams or consider temporary staffing to manage absences.
Respecting privacy – Handle medical information confidentially to protect employee dignity.
Promoting inclusivity – Normalise the use of neonatal leave to reduce stigma and encourage uptake.

As Employment Rights Minister Justin Madders emphasised, this entitlement allows parents to focus on their newborn “without worrying about keeping their job”.

Future developments

This reform sits alongside other updates to family-friendly rights, such as upcoming changes to flexible working and carer’s leave.

Staying informed and proactive will help employers adapt smoothly and position themselves as supportive workplaces.

For further guidance on this upcoming update, contact our employment law team today.

Amanda Hyam

Head of Dispute Resolution and Employment

I have specialised in Dispute Resolution, Civil Litigation and Employment law for more than 15 years. I understand how daunting the prospect of litigation can be and because of this I am always available to discuss concerns.