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Neonatal Care (Leave and Pay) Act

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We updated you on the Neonatal Care (Leave and Pay) Act 2023 in our last Newsletter (here) and what to do to prepare.  The Act has now come into force (on 6 April 2025) but before it did so, further regulations were introduced setting out in more detail how the leave (and pay) will work in practice.  We outline these below.

Key updates from the additional regulations include:

  • Definition of neonatal care: This covers medical care in a hospital (including maternity homes, clinics and outpatient departments); ongoing medical care after hospital discharge that is under the direction of a consultant (including monitoring by, and visits to the child from, healthcare professionals arranged by the hospital); and palliative or end of life care.
  • Eligibility: Employees who have a parental relationship with the child receiving care, (including birth parents, adoptive parents or intended parents via surrogacy, and partners of these individuals) will be entitled to take one week of leave for each week the child receives neonatal care (up to 12 weeks). If more than one child requires neonatal care at the same time, entitlement only accrues once. For example, if twins spend three weeks in neonatal care, the employee gets three weeks of leave, not six.
  • Taking leave: An employee can take leave during the period the child is receiving the neonatal care or within 7 days of the end of that period (‘Tier 1 period’) or at any other time during the 68-week period following birth (‘Tier 2 period’). During the Tier 1 period, the leave can be taken in blocks of at least a week (but they do not need to be consecutive). During the Tier 2 period, any weeks of leave must be taken consecutively.
  • Notice:    To take leave during the Tier 1 period, the employee needs to give notice to their employer at some point before their normal start time on their first day of absence (or as soon as reasonably practicable). There is no requirement for the notice to be in writing. But during the Tier 2 period the employee needs to give written notice to their employer 15 days in advance for a single week and 28 days in advance for two or more weeks. However, the employee and employer can agree to waive any notice requirements.
  • The notice should include the parent’s name and confirmation they meet the eligibility criteria; their child’s date of birth (or, in adoption cases, the date of placement or entry to Great Britain); the date(s) their child received and ended neonatal care; the date they wish the leave to begin and the number of weeks leave the notice is for; and confirmation of their eligibility and that they are taking the leave to care for the child. If the employee gives notice before the child’s neonatal care ends, the employee must notify the employer of the leave’s end date as soon as reasonably practicable. If the care re-starts, the employee should notify their employer (promptly) of the new start date.
  • Pay eligibility: To be eligible for Statutory Neonatal Care Pay (SNCP), employees must have at least 26 weeks’ continuous service with their employer by the 15th week before the expected week of childbirth (or the week in which the adopter is notified of a match, or the week before the neonatal care starts in all other cases) and earn at least the Lower Earnings Limit (currently £125 per week from 6 April 2025) based on their average pay during the previous 8 weeks.
  • Pay rate and recoup: SNCP is paid at either the statutory prescribed rate (£187.18 per week from April 2025) or 90% of earnings if lower. Employers will be entitled to recoup an amount equal to 92% of the payment, or the whole of SNCP if they qualify for small employers’ relief.
  • Protection: Employees taking neonatal care leave are entitled to the same employment protections as other types of family leave:
  • They will be protected from detriment or dismissal arising from their taking, or seeking to take, neonatal care leave. They have the right to return to the same job if they only take neonatal care leave or took two or more types of statutory leave (e.g. maternity and neonatal care leave) which amounted to 26 weeks or less (excluding periods of unpaid parental leave of up to four weeks). If their leave exceeds these limits, they can return to the same job unless this is not reasonably practicable for the employer – in which case they have the right to return to another job which is both suitable and appropriate.

Employees who have taken six continuous weeks of leave also benefit from extended redundancy protection rights (if these do not already apply via maternity, adoption or paternity leave) with the right to be offered a suitable alternative vacancy applying from the day after the employee has taken six consecutive weeks of leave and ending on the day after the child turns 18 months old.

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