Under the Neonatal Care (Leave and Pay) Act 2023, eligible parents can take time off work to be with a baby who is receiving neonatal care. This new right introduces a leave and pay entitlement for qualifying working parents, with the aim of providing better support to those families and an element of income protection.
Neonatal care leave is a day one right for employees; it does not apply to workers or self-employed contractors. It also only applies to parents of babies born on or after 6 April 2025.
Qualifying parents (including fathers, non-birthing, adoptive and surrogate parents) who have a baby admitted to neonatal care up to the age of 28 days may be eligible for neonatal care leave after their baby has been receiving care for seven days or more.
The entitlement is to one week’s leave for each week a baby has neonatal care, up to a maximum of 12 weeks. Neonatal care leave must be taken as seven consecutive days, so parents have to take a minimum of one week.
Neonatal care leave is additional to other types of family leave, and each parent has their own leave entitlement. This means that fathers and non-birthing parents now have a specific right to leave, allowing them to spend more time with their baby receiving neonatal care. Where parents do not meet eligibility criteria, they may be able to rely on other forms of statutory leave, such as parental leave or time off for dependents.
Both neonatal leave and pay (see below) can be taken in two tiers; Tier 1 is while a baby is still receiving care plus a week after, and Tier 2 is within 68 weeks of the birth. Neonatal leave can therefore be accrued and taken at a later date. The notice an employee must give their employer depends on whether they are taking Tier 1 or Tier 2 leave.
The leave is not limited to the time when a baby is in a neonatal hospital unit. It can also apply to certain neonatal care after leaving hospital or to palliative/end of life care.
Additionally, eligible parents may be entitled to up to 12 weeks of neonatal care pay if they have 26 weeks of continuous service with their employer and meet the minimum earnings threshold for National Insurance purposes (for April 2025-26, this is an average of £125 per week gross).
The current statutory rate for neonatal care pay is £187.18, although of course it is open to employers to offer an enhanced pay entitlement under their own workplace policies.
Employers should consider whether to introduce a specific policy on neonatal care leave and pay, or how their existing policies may need updating. They may also wish to consider communicating the new entitlement to managers or employees more generally.
For further information, advice on a specific situation or to update your own workplace policies, please contact our employment team.
Marian advises employer and employee clients on a full range of contentious and non-contentious employment issues.
She has an long-standing reputation in acting for C-level executives (CEOs, CFOs, COOs and CTOs) and other senior executives particularly in the creative, media and entertainment industries, as well as TV, theatre, fashion, retail, advertising, financial services and publishing. She also advises HNW individuals and family offices in relation to their household staff.
Marian specialises in providing pragmatic and strategic advice to senior executives on exit negotiations on termination of employment (with potential claims such as unfair dismissal, discrimination, harassment and whistleblowing) settlement agreements, appointments, and restrictive covenants and workplace issues.
She also advises employer clients on complex employee relations issues (including disciplinaries and grievances and sexual harassment), restructures (including individual and collective redundancies) and on the full range of employment documentation including settlement agreements, employment contracts and policies.
Some of Marian’s employer clients include Marv Studios (film), Cast & Crew LLC (film), Seven.One Studios (TV and film), Delfont Mackintosh Theatres, Nimax Theatres, Society of London Theatre/Theatre UK, International Car Wash Group (retail), Wolford and various internationally acclaimed musicians and producers.
Marian has celebrated a career of 40 years at Harbottle & Lewis having joined the firm in October 1984, becoming a corporate partner in 1989 and founding the employment group in 2000.
Lucy works with a wide range of businesses, from startups to multinationals, and has particular industry experience advising companies in the film, TV and entertainment sectors. She additionally supports individuals at a senior level on workplace complaints and exit arrangements.
Lucy frequently handles complex disputes and employee relations issues, including sensitive grievance and disciplinary processes. As well as supporting employers with such matters, Lucy manages complex employment tribunal claims and has acted as an independent investigator for employers on several high level disciplinaries. Her experience allows her to offer a full range of employment legal support to a business, from day to day queries and providing training, handbooks and policies, through to strategic advice on redundancies, restructuring or business sales.
Alongside her work for the firm, Lucy is a member of the Employment Lawyers Association (ELA). She has sat on ELA working parties responding to Government proposals for employment law reform and volunteered for several pro-bono projects, including Maternity Action.