With effect from 6 April 2025, eligible employees will have the right to statutory neonatal leave and potential pay. 

The previous Conservative government had proposed new entitlements for parents of babies who required a stay in neonatal care.  This can be a very difficult period for employees, worrying about their newborn as well as trying to juggle a return to work after just a short 2 weeks of paternity leave, or experiencing the feeling that this time was eating into their maternity leave period.

On 20 January 2025, the current Government introduced regulations confirming that, subject to final parliamentary approvals, these entitlements will come into effect from 6 April 2025.

What is statutory neonatal care leave?

For babies born (or placed for adoption) after 6 April 2025, parents will be entitled to take up to 12 weeks’ statutory neonatal care leave (“SNCL”), if the child requires neonatal hospital care of more than 7 days within the first 28 days of their birth. 

There are complex rules around accrual of SNCL.  In effect, the employee will be entitled to 1 weeks’ SNCL for each week that the child is receiving hospital care, up to a maximum of 12 weeks. 

SNCL will need to be taken within 68 weeks’ of the child’s birth (or adoption placement).  It can be added on to any other relevant period of leave, for example, it could be taken at the end of a period of maternity or adoption leave.

A new concept of “tier 1” and “tier 2” periods is being introduced.  A tier 1 period is the period starting with the day the child starts receiving neonatal care and ending a week after neonatal care ends.  During a tier 1 period, SNCL can be taken in non-consecutive blocks of a minimum of 1 week.  A tier 2 period is any other period during which SNCL could be taken.  Any remaining entitlement to SNCL may be taken in the tier 2 period but must be taken as consecutive full weeks. 

Who is eligible to SNCL?

This is a day one right; all employees will be eligible regardless of their length of service, subject to providing the correct notice to their employer.  This will include details of the date of birth/placement, date that neonatal care starts and ends, and the period of SNCL that they want to take.

Right to return to work

Employees will have the right to return to their job after any period of SNCL.  If, when added to other periods of statutory leave taken for the same child, the total period of leave is more than 26 weeks’, that is not reasonably practicable, they will have the right to return to another job which is both suitable and appropriate in the circumstances.  Employers will be familiar with this terminology, which replicates the right for those employees returning from ordinary or additional maternity leave. 

Protection from detriment and automatic unfair dismissal rights

An employee will be entitled to not be subjected to any form of detriment as a result of taking SNCL, Similarly, if they are dismissed because of exercising their right to take SNCL, this will be automatically unfair.

Statutory neonatal care pay (“SNCP”)

There are complex provisions regarding the eligibility for SNCP.  Generally speaking, those eligible to take SNCL will also be entitled to receive SNCP if they have been employed with the same employer for at least 26 weeks, by the week immediately prior to the 14^th week before the expected week of childbirth/the week in which the adopter is notified they are being matched with a child.

SNCP will be paid at the same rate as statutory paternity pay.  With effect from 6 April 2025, this will be the lower of £187.18, or 90% of average weekly earnings (based on average pay during the 8 weeks prior to SNCL being taken), per week.

What should I do?

Employers should take steps to introduce new Neonatal Leave and Pay policies and procedures to reflect the new entitlements.  Managers, payroll and HR teams alike should familiarise themselves with the new concepts and processes in order to equip them to deal with requests in readiness for the changes being implemented in April 2025.

Please contact Jessica Jones on jones@ortolan.com for more information.