From 6 April 2025, parents of babies requiring extended neonatal care will gain a new statutory right to neonatal leave. This entitlement is designed to provide financial security and job protection during what can be an exceptionally challenging time for families.
For many parents, neonatal care involves managing work commitments alongside hospital visits, often exhausting maternity, paternity, or annual leave in the process. The introduction of neonatal leave aims to alleviate these pressures by granting additional time off specifically for neonatal care, ensuring greater flexibility and reducing financial strain.
So, how will neonatal leave and pay operate? What are the eligibility criteria? And how should employers prepare to manage this entitlement effectively?
Neonatal leave: Key points for employers
1. Eligibility
Neonatal leave is available to parents of babies born on or after 6 April 2025 who require neonatal care for seven or more consecutive days within the first 28 days of birth. Both parents are eligible to apply for this leave. It must be taken within 68 weeks of the baby’s birth or placement (in cases of adoption).
2. Service requirements
Neonatal leave is a day-one right, meaning employees are entitled to take it from their first day of employment, without any minimum service requirement. However, employees must have at least 26 weeks’ continuous service to qualify for Statutory Neonatal Care Pay (SNCP).
3. Tiered structure
Neonatal leave is divided into two tiers:
Tier 1: Covers the period during which the baby is receiving neonatal care and extends up to seven days post-care. Employees can take leave in non-consecutive weeks, providing flexibility based on the child’s medical needs. Notice requirements are minimal; employees must inform their employer before the start of each leave week or as soon as reasonably practicable.
Tier 2: Applies after the Tier 1 phase and allows leave up to 68 weeks from birth. This leave must be taken in a single continuous block. Employees must provide written notice: at least 15 days before taking a single week of leave, or 28 days before taking multiple consecutive weeks.
Employers should ensure they understand which tier applies in each case. esphr can provide guidance on this.
4. Duration of leave
Parents can take up to 12 weeks of neonatal leave. Tier 1 leave can be taken in blocks of no less than one week, whereas Tier 2 leave must be taken in a continuous block.
5. Paid leave
Neonatal leave is paid at the SNCP rate, similar to statutory maternity pay or shared parental pay, for up to 12 weeks. Employees must meet the 26-week service requirement and earn an average of at least £123 per week to qualify.
6. Rate of pay
As of 2025, SNCP is set at £156.66 per week or 90% of average weekly earnings, whichever is lower. This can be claimed for a maximum of 12 weeks provided the employee has 26 weeks or more continuous service.
7. Start date
Neonatal leave can commence as soon as the baby is admitted to neonatal care. It can also be interrupted by other statutory family leave (e.g., maternity leave). Given the complexity of these entitlements, employers may benefit from expert support when calculating leave periods – our team can help.
8. Supporting documentation
Employers may request evidence confirming that the baby was in neonatal care for the required period. This could include a letter from the hospital or neonatal unit.
9. Notification requirements
The notice period will vary depending on when the neonatal leave is taken and whether it falls under Tier 1 or Tier 2. In all cases, employees must provide written notice.
10. Right to return to work
Employees returning from neonatal leave have the right to resume their original role or a suitable alternative. They must be treated similarly to those returning from maternity or paternity leave, ensuring job protection.
