On 20 January 2025 the government laid regulations before parliament to activate The Neonatal Care (Leave and Pay) Act 2023. Subject to parliamentary approval, from 06 April 2025 The Neonatal Care (Leave and Pay) Act will grant employees the right to take up to 12 weeks leave.
Neonatal Care Leave
- applies in respect of children born on or after 6th April 2025.
- will be a day one right for all employees.
- will apply to parents of babies who are admitted into hospital up to the age of 28 days and who have a continuous stay in hospital of 7 full days or more.
- eligible parents will be able to take up to 12 weeks of paid leave and a minimum entitlement of one week for each week their baby is in hospital.
- applies in addition to other leave entitlements such as maternity, paternity and shared parental leave.
- must be taken in the first 68 weeks of the baby’s birth. Statutory Neonatal Care Pay (NCP)
We’re still waiting for some clarification regarding NCP. However, the current understanding is that in order to qualify for Neo Natal Care Pay (NCP) an employee will be required to be employed for a minimum of 26 weeks prior to the leave being requested and earnings on average of at least £123 a week. This is however still subject to clarification. NCP will be payable at a fixed or earnings-related weekly rate to be prescribed by the regulations. The expectation is that the rate will follow the rate of SMP and other family-related pay.
Employment Protections
Employees who take neonatal care leave will benefit from similar protections from dismissal or detriment as a result of taking the leave as those associated with other forms of family- related leave (such as maternity or paternity leave).
In Conclusion
Whilst we are still awaiting detailed guidance to clarify key aspects of how the leave will work, such as how employees can apply for it, what notice is must be given, and what evidence will be required, we would recommend that members take considerations include:
- Review and update company policies to reflect the new entitlements (MILS will have a template neonatal care leave policy available in due course once the regulations are finalised and approved by parliament).
- Ensure payroll systems can accommodate Statutory Neonatal Care Pay calculations.
- Provide guidance and support to employees who may need to take neonatal leave.
- Establish clear processes for requesting and managing neonatal care leave.
- Train managers and HR professionals to understand the new rights and handle requests appropriately.
As always, this advice is general in nature and will need to be tailored to any one situation. As an RMI member you have access to the RMI Legal advice line, as well as several industry experts for your assistance. Should you find yourself in the situation above, contact us at any stage for advice and assistance as appropriate.
Motor Industry Legal Services
Motor Industry Legal Services provides fully comprehensive legal advice and representation to UK motor retailers for one annual fee. It is the only regulated law firm in the UK which specialises in motor law and motor trade law. MILS currently advises over 1,000 individual businesses within the sector as well as the Retail Motor Industry Federation (RMI) and its members.
