Statutory neonatal care leave and pay

Neonatal care is defined broadly in the Act. It is not limited to medical care received in hospital but also encompasses outpatient treatment, palliative and end of life care.

Parents may be entitled to Neonatal Care Leave (NCL) if:

• They have a qualifying parental or other personal relationship with the child, including adoption or surrogacy cases;
• Their baby is admitted into neonatal care within 28 days of the child’s birth, and
• They have a continuous stay in neonatal care of seven full days or longer.

If eligible, parents may take one week of NCL for each qualifying week their child spends in neonatal care, up to a maximum of 12 weeks. This leave must be taken in weekly blocks within the first 68 weeks of the child’s birth. It may be taken in addition to other types of statutory family leave, such as maternity or paternity leave.

Employees will receive protection from detriment or dismissal relating to NCL, as well as the right to be offered suitable alternative employment with priority over other employees if a redundancy situation arises during NCL. They will also be entitled to return to the same job or, in certain circumstances, to a suitable and appropriate alternative job.

The government has also introduced provisions relating to Statutory Neonatal Care Pay (SNCP). SNCP is available to parents who are eligible for NCP and:

• Have at least 26 weeks’ continuous service with their employer ending with the “relevant week”, and;
• Have received normal weekly earnings above the statutory lower earnings limit for a period of eight weeks ending with the “relevant week”.

The meaning of the “relevant week” will depend on whether the employee is also entitled to statutory maternity, paternity or adoption pay. In cases where an employee is entitled to maternity or paternity pay, it will be the 15th week before the expected birth date. SNCP is payable within the first 68 weeks after the child’s birth for a maximum of 12 weeks. The rate of SNCP is the same as statutory paternity pay or statutory shared parental pay. 

Employees requesting both NCL and SNCP must give their employers written notice. The notice time limits and evidence requirements vary depending on whether the employee requests the leave within seven days after neonatal care ends, or later. 

We advise charities to revise their policies to reflect the new statutory provisions and inform staff. It is best practice to have a neonatal leave and care policy in place. Alternatively, you may review your general family leave policies to include a neonatal leave section. If you would like to learn more about Neonatal Care (Leave and Pay) Act 2023 and its impact on your charity, please get in touch with the employment law experts in our charity team.