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Guidance on Neonatal Care Leave

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We updated you here on the Neonatal Care (Leave and Pay) Act 2023 which came into effect on 6 April 2025 and provides new leave and pay entitlements for parents with a baby in neonatal care.  Now there is new guidance to help employers.

Both ACAS and the Government have issued new advice to employers regarding neonatal care leave in the workplace.

The ACAS guidance (here) aims to help employers understand what neonatal care is, who is eligible for leave and pay and how employers can support employees taking leave. Including:

  • Reminding employers that employees who are not eligible may instead be able to take unpaid emergency dependant care leave, other statutory leave, or be offered compassionate leave or unpaid time off.
  • Highlighting that a baby’s admission to neonatal care is a highly stressful situation and encourages employers to be flexible and support the employee’s mental health.
  • Advice on best practice, for example:

With the employee’s consent, allowing family members or friends to notify the employer and provide updates on the employee’s behalf.

Agreeing with the employee what information about the baby’s neonatal care can be shared and with whom.

Ensuring contracts and policies set out the process for requesting neonatal care leave and pay.

The Government guidance (here):

  • Outlines the new rights to neonatal care leave and pay for employees.
  • Reminds employers of their duty to keep written records of specified information relating to statutory neonatal care pay, and to retain those records for three years after the end of the relevant tax year.
  • Explains the process for employers to recover all or part of statutory neonatal care pay from HMRC.
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