The UK government is enacting new legislation on 6 April 2025 that will give employees a statutory right to neonatal leave and pay for babies born on or after this date. Lisa Patmore looks at the benefits to employees and the implications for HR

Offering support for parents of babies requiring neonatal care, through the introduction of statutory neonatal care leave (SNCL) and pay (SNCP), is another major step forward for family rights and provides a valued safety net for new parents. However, these new rights present a fresh set of challenges for businesses.

What’s involved?

Neonatal care leave is a day-one right, meaning there is no minimum length of service required to qualify. The detail behind this new right is complex but means parents, adopters and their partners who are responsible for the child’s upbringing can take up to 12 weeks off as SNCL, in addition to other statutory family leave like maternity or paternity leave. SNCL must be taken within 68 weeks of birth and eligibility hinges, among other things, on the baby starting neonatal care within 28 days of birth.

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Employees are entitled to one week of SNCL for each qualifying week during which a child receives uninterrupted neonatal care, up to the 12 weeks.

The finer detail includes the fact that SNCL must be taken in weekly blocks, SNCL will not accrue in the first qualifying week that the child is receiving neonatal care, caregivers must meet the eligibility criteria and employees must give the requisite notice to take SNCL.

Unlike SNCL, SNCP is not a day-one right. Employees need 26 weeks’ service to qualify and, like for statutory maternity pay, how that service is calculated is not straightforward.

The rate of SNCP is based on an employee’s normal weekly earnings, calculated in the same way as statutory maternity pay, and paid at the same rate as statutory paternity or shared parental pay. As a rule, an employee who qualifies for statutory maternity, adoption or paternity pay will also qualify for SNCP. Surprisingly, some individuals who are not employees may still qualify for SNCP, even if they don’t qualify for NCL itself.

There are different trigger points and provisions for adoption and surrogacy cases. Special provision is made to preserve eligibility for NCL where the child dies and, put simply, when an adoption or surrogacy doesn’t proceed as planned.

Employees who are taking or have recently returned from SNCL also receive redundancy protection, ensuring they’re given priority for suitable alternative roles. There are also further protections against detriment and dismissal”

The detail

Before taking SNCL, employees must notify their employer and provide several key details about the child and the care they’re receiving. This notice period varies depending on whether leave is taken during a Tier 1 or Tier 2 period.

A Tier 1 period is, effectively, an immediate care period, beginning when the child starts receiving neonatal care and ending seven days after care finishes. A Tier 2 period applies to remaining leave taken outside a Tier 1 period. Tier 1 leave requires notification before the first day of absence in that week, or as soon as practically possible, while Tier 2 leave requires 15 to 28 days’ notice, depending on the duration requested. SNCL can be taken in non-consecutive weeks in the Tier 1 period but must be taken in consecutive weeks in the Tier 2 period.

As with many statutory family leave entitlements, there is detailed provision on the job role and terms that those returning from SNCL have the right to. Employees who are taking or have recently returned from SNCL also receive redundancy protection, ensuring they’re given priority for suitable alternative roles. There are also further protections against detriment and dismissal.

There are also specific provisions on how SNCL interacts with other types of statutory family leave, impacting available SNCL and when it can be taken.

The devil is in the detail, though, and there is significant room for confusion. In particular, employers should watch out for complexities in calculating qualifying periods and the wide definition of neonatal care, especially when it’s hard to distinguish what’s interrupted care or not.

The business impact

Clearly this new right is a positive step toward supporting parents. But, at the same time, it’s a call to action for employers.
The workings of SNCL and SNCP are not straightforward and until the right becomes second nature to HR teams, the benefit of a clear policy cannot be overstated. Training will be key.

It’s also essential for HR teams to ensure that they know when neonatal care starts and finishes, track periods of all statutory leave and ensure systems are in place to retain proof of entitlement, ensure compliance with notice requirements and pay SNCP in the right way. Given the additional administrative responsibilities for HR teams, it’s a necessity rather than a benefit to have these systems in place.

Taking a longer-term view, the picture becomes more positive. Besides the satisfaction of supporting parents in such difficult times, businesses that are ‘family-friendly’ tend to have higher employee satisfaction and loyalty, thus higher retention rates. Employees who feel supported during a difficult period are more likely to return to work engaged and motivated.

Implementing efficient and effective neonatal leave policies is a surefire way for businesses to strengthen their employer brand and recruit more talent.

Companies that go beyond the statutory minimum and offer enhanced neonatal leave provisions will see even greater rewards.

The bottom line

The introduction of this law marks a milestone for working parents, particularly for fathers and partners – including partners of those on adoption leave – who may exhaust their entitlement to paternity leave where their baby is in neonatal care for a prolonged period, having then to use annual leave, compassionate leave or unpaid parental leave.

For HR teams that want the process to go smoothly, priorities should lie in updating policies, educating managers and ensuring that good record-keeping is in place. By taking a proactive approach, HR departments can not only comply with the law but also make it easier for themselves and continue to build a supportive workplace culture that values work-life balance and the wellbeing of its employees.

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