A new right to leave for parents where babies are receiving neonatal care is due to come into force on 6th April 2025.
The Neonatal Care (Leave and Pay) Act 2023 created this right but the government is now passing regulations to bring it into effect.
Key Highlights of Neonatal Care Leave
- Eligibility:
The right is similar to other types of family related leave, and applies where a child born after 6th April 2025 is admitted to neonatal care within 28 days of birth, for at least 7 consecutive days. - Duration of Leave:
Parents can take a week of leave for each week the child spends in neonatal care, up to a maximum of 12 weeks. - Leave Structure:
This leave cannot be taken for the first week that the child is in neonatal care. However, as this leave can be taken on top of other types of leave which the parents are entitled to, it is likely that parents will be exercising rights to maternity or paternity leave at that stage, if applicable. It appears in practice that it is intended for neonatal care leave to be taken on the end of maternity or paternity leave, for example, to compensate for the time in neonatal care.
This is particularly indicated by provision for two 'tiers' of leave, which have different notice requirements.
- Tier 1 Leave:
Tier 1 leave is leave which is taken at the point the child is receiving neonatal care (or the week in which the care ends), and there is no requirement to give advance notice to take this leave beyond advising by the time they are due to start work on the first day of each week of leave. This appears to be to reflect that such leave is likely to be taken in emergency circumstances and where advance notice is not possible.
- Tier 2 Leave:
Tier 2 leave is that taken at any other time, and requires 15 days notice for a weeks' leave, or 28 days notice for 2 weeks or more. These weeks must be consecutive. The leave must be taken within 68 weeks of the birth. This indicates that Tier 2 leave is that intended to be taken later and most likely added to the end of another period of family related leave.
In practice, in situations of birth, the parent who has given birth will be on maternity leave. Maternity leave cannot be paused and restarted, and therefore the neonatal leave will require to be taken at a later date, and is effectively to compensate for the time spend in neonatal care. Generally, it is more likely to be the father, partner or secondary adopter who seeks to take Tier 1 neonatal leave at the time the child is actively receiving the care, particularly if their right to paternity leave has been exhausted.
There is also a right to be paid for this leave, but the entitlement differs. The right to take neonatal care leave is a 'day one' right, meaning that employees are entitled to it from the beginning of their employment. However, to be entitled to statutory pay for the leave, they must have 26 weeks' service with their employer. The right to pay is the statutory rate or 90% of usual earnings, whichever is the lower.
This new neonatal care leave is designed to support parents during challenging times when their newborns require specialised medical care. By providing flexible leave options, the government aims to ensure that families can be together during these critical periods without compromising their financial stability.
