Neonatal Care Leave and Pay | Update for Employers

Employers will already be aware that the Government has confirmed that a new right to neonatal leave and pay will be introduced and take effect from 6 April 2025 under the Neonatal Care (Leave and Pay) Act 2023.In readiness for the Act coming in, the Government has provided guidance under The Neonatal Care Leave and Miscellaneous Amendments Regulations 2025 (the “Regulations”). 

Below we have set out some of the things that employers will need to be aware of and  consider to ensure that they are prepared when the new legislation comes into effect. 

Training 

Now may also be a good opportunity for employers to offer training to their HR staff or arrange for training to be provided in readiness for the upcoming changes. 

Updating employees and policies 

Employers will need to send an update to their employees informing them of their new rights and when those new rights will come into effect, and what it will mean for employees. 

Employers will already have some policies in place regarding family leave. In preparation for the upcoming changes, policies will need to be updated to include details of the statutory right to neonatal care leave and pay. 

Now would also be a good time perhaps for employers to create a template for employees to use to ensure that they comply with the notice requirements.  

The Statutory Neonatal Care Pay (General) Regulations 2025 and The Neonatal Care Leave and Miscellaneous Amendments Regulations 2025 provide guidance regarding the type of notice that employers need to be given. When notice is given will depend on which period an employee takes their neonatal care leave. 

The Regulations define the two periods as:

“Tier 1 period’ is the period beginning with the day the child starts receiving neonatal care and ending with the seventh day after the child stops receiving neonatal care. 

Tier 2 period’ means any period of time in the qualifying period which is not the tier 1 period.”

Employment rights of employees on neonatal care leave 

Under The Neonatal Care Leave and Miscellaneous Amendments Regulations 2025, employees who take neonatal care leave are, during any period of leave:

“entitled to the benefit of all the terms and conditions of employment which would have been applied if the employee had not been absent on leave.” 

Employers must be mindful of their employees’ rights during any period of neonatal care leave that is taken when an employee returns from a period of neonatal care leave. 

Further, employers should be aware that if they dismiss an employee through redundancy for any of the below reasons, then that dismissal will be automatically unfair and the employee could potentially issue a claim for such against the employer. 

The Neonatal Care Leave and Miscellaneous Amendments Regulations 2025 state that the reasons are: 

•    “that the employee took, or sought to take or made use of the benefits of, neonatal care leave, 
•    that the employer believes that the employee was likely to take neonatal care leave.”

Absence management 

Employers should be mindful of the physical and mental effects on parents that a traumatic birth, a child receiving palliative or end of life care, or having a child that needs to spend time in a neonatal intensive care unit can have on employees. It is possible that following such events, an employee’s performance at work or behaviour may be affected or result in more absences from work.

Employers should approach any requests for time off or an increase in sick leave carefully and be mindful of the potential claims that could be brought against them by employees as a result of how the employer manages their absence, disciplinary and/or dismissal.  

If you need further advice and guidance with regards to Neonatal Care Leave and Pay contact us today for more details on 01926 491181 or by email at employment@moore-tibbits.co.uk