Employment law: How new legislation will help working parents whose newborn baby needs neonatal care

Working parents with a newborn baby admitted to a neonatal care unit will be entitled to extra time off as a day one right from 6 April (2025).

In addition, those who meet the relevant employment criteria will be able to claim for financial support to help them during their time away from work, giving both parents up to 12 weeks paid leave on top of other entitlements like maternity and paternity leave.

What measures does the Neonatal Care (Leave and Pay) Act 2023 bring in?

From 6 April 2025, under the Neonatal Care (Leave and Pay) Act 2023, employed parents who have babies requiring neonatal care will gain a new statutory right to leave and pay.

• Neonatal Care Leave is a day one right and applies to children born on or after 6th April 2025.
• Parents of babies admitted to neonatal care within 28 days of birth, and staying for seven or more days, are entitled to up to 12 weeks of leave. It must be taken within 68 weeks of the baby’s birth.
• Neonatal Care Leave is on top of other leave entitlements like maternity, paternity and shared parental leave.
• To qualify for up to 12 weeks of Neonatal Care Pay, and a minimum entitlement of one week, eligible parents must have been employed for at least 26 weeks prior to asking for leave and earning on average at least £123 a week.

Why is this change in the law so important?

With one in seven newborn babies cared for in neonatal units across the UK each year, the Neonatal Care (Leave and Pay) Act 2023 will benefit up to 60,000 new parents who previously had to worry about juggling work to spend time with their baby often amid fears of losing their job.

Bliss, the charity for babies born premature or sick, has campaigned long and hard for this change in the law.

Chief executive, Caroline Lee-Davey, says: “At Bliss we know how important it is that babies born premature or sick have both parents at their side in neonatal care during their challenging first weeks and months of life, playing a hands-on role in their care.

“In contrast, the lack of additional parental leave rights to date has forced many to make the unimaginable choice to return to work in order to pay their bills while their baby is desperately ill in hospital.”

What do employers need to know about the new Neonatal Care (Leave and Pay) Act?

It’s important that employers act now to ensure they are ready for when the Neonatal Care (Leave and Pay) Act becomes law in April.

This includes updating family leave and pay policies, ensuring payroll systems can accommodate Neonatal Care Pay and letting managers and employees know about the changes to the law and how they will work in practice.

Get in touch

If you need advice about this area of the law, please contact our specialist Employment Team.

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