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10 things employers need to know about new neonatal leave
Written by Hannah Copeland on 11 March 2025
From 6 April 2025, parents of babies who require extended neonatal care will have a new statutory right to take neonatal leave. This entitlement aims to provide much-needed financial security and job protection for families facing a difficult and uncertain time.
For many parents, having a newborn in neonatal care means balancing hospital visits with work commitments, often using up maternity, paternity, or annual leave in the process. The introduction of neonatal leave seeks to address this challenge by giving eligible employees additional time off specifically for neonatal care, reducing stress and financial pressure during what can be an emotionally and physically demanding period.
So, how will neonatal leave and pay work? What are the stipulations surrounding it? And how should employers manage it?
Here are 10 key points all organisations should be aware of.
Neonatal leave: Key points for employers
Eligibility
Neonatal leave is available to parents who have a baby, born on or after 6 April 2025, that requires neonatal care for seven or more consecutive days within 28 days of birth. Both parents can apply for this leave. Leave must be taken within 68 weeks of the baby’s birth (or placement in the event of adoption).
Service requirements
Neonatal leave is a day one right, meaning it can be taken by an employee from their first day of employment, with no minimum service requirement. However, employees must have at least 26 weeks’ continuous service to be eligible for Statutory Neonatal Care Pay (SNCP).
Tiers
Neonatal leave is broken down into two tiers:
- Tier 1 leave covers the time during which the child is receiving neonatal care and extends to seven days after the care ends. During Tier 1, employees can take leave in non-consecutive weeks, offering flexibility to accommodate the child’s medical needs. Notice requirements are minimal; employees must inform their employer before the start of each week of leave or as soon as reasonably practicable.
- Tier 2 leave applies after the Tier 1 phase and up to 68 weeks from the child’s birth. Leave during Tier 2 must be taken in a single continuous block. Employees are required to provide written notice: at least 15 days before taking a single week of leave, or 28 days before taking multiple consecutive weeks.
If you’re unsure, WorkNest’s HR Consultancy Team can offer guidance to help you determine which tier the leave falls into.
Duration
Parents can take up to 12 weeks of neonatal leave. Tier 1 leave can be broken up into periods of no less than one week, while Tier 2 leave must be taken in one continuous block.
Paid leave
Neonatal leave is paid at SNCP rate, which is similar to statutory maternity pay or shared parental pay, but only for a maximum of 12 weeks. As mentioned, to qualify for SNCP, employees must have 26 weeks’ service. They must also earn an average of at least £123 a week.
Rate of pay
SNCP is £156.66 per week (as of 2025), or 90% of average weekly earnings (whichever is lower). This pay can be claimed for up to 12 weeks provided the employee has 26 weeks or more continuous service.
Start date
Neonatal leave can begin as soon as the baby is admitted to neonatal care. The leave can be interrupted by other statutory family leave (e.g. maternity leave).
Calculating how this works is complex – WorkNest’s HR Consultancy Team can help.
Supporting documentation
Employers may require evidence that the baby was in neonatal care for the necessary period. This could include a letter from the neonatal unit or hospital.
Notification requirements
This will vary depending on when the neonatal leave is to be taken (and whether it sits within Tier 1 or Tier 2). Notice must be given in writing.
Right to return to work
Parents are entitled to return to their original job or a suitable alternative after neonatal leave ends, and they should be treated as if they were on maternity or paternity leave, ensuring job protection.
What should employers do now?
To ensure compliance, employers should:
- Review existing family leave policies and update them as necessary
- Communicate the new entitlement to managers and employees
- Adjust payroll systems to accommodate statutory neonatal care leave payments
- Seek expert guidance if unsure about implementation
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Need help managing neonatal leave?
WorkNest’s HR Consultancy Team can support you with all the practical arrangements for calculating and determining entitlement to periods of family leave, including neonatal leave.
For advice and assistance, get in touch on 0345 226 8393 or request your free consultation using the button below.