Paid Neonatal Care Leave from April 2025: what employers need to know
The Neonatal Care (Leave and Pay) Act 2023 (the Act) introduces statutory neonatal care leave and pay for parents whose babies require specialist neonatal care. This new entitlement aims to address the challenges faced by employees during such critical times.
What is Neonatal Care Leave?
Neonatal care leave is a new statutory entitlement for employees whose child requires neonatal care. Neonatal care refers to a baby’s admission to hospital for specialist medical or palliative care that starts within the first 28 days after birth and lasts for at least seven consecutive days. This leave is in addition to existing family leave entitlements such as maternity, paternity, or shared parental leave.
When does it begin?
Subject to Parliamentary approval, the new statutory right will take effect from 6 April 2025, aligning with the start of the tax year. Employers should be prepared to implement these changes, as the legislation mandates updates to systems and processes to comply with the new rights.
Key provisions of Neonatal Care Leave
- All employees with a parental or, yet to be defined, personal relationship to the child receiving neonatal care will be eligible for neonatal care leave from the first day of their employment.
- While the precise duration is yet to be defined, the leave is expected to be at least one week and last up to 12 weeks, depending on the length of neonatal care required.
- Regulations will determine when leave can be taken but it must be within a minimum of 68 weeks from the child’s birth.
- Regulations may make provision about notices, evidence, record-keeping and other procedures to be followed.
Statutory Neonatal Care Pay
Regulations are needed to bring the right to statutory neonatal care pay into force. Eligible employees will have access to neonatal care pay during their leave if they meet specific criteria:
- A minimum of 26 weeks’ continuous service with their employer.
- Earnings above the lower earnings limit during the relevant period.
The pay rate is expected to align with other statutory family pay rates, such as statutory maternity pay.
Employer responsibilities
Employers should take note of the following obligations:
- Employees on neonatal care leave will retain all terms and conditions of employment, except for remuneration.
- It is anticipated that employees returning from neonatal care leave will have a right to return to the same job or, depending on the length of the combined periods of leave, if it is not reasonably practicable for the employer to allow them back to the same job, a suitable alternative on no less favourable terms.
What employers need to prepare for April 2025
To ensure a smooth transition, employers should:
- Update leave policies to include neonatal care leave provisions.
- Ensure HR and payroll teams are fully aware of the new provisions.
- Communicate the upcoming changes to employees.
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