Written by Rebeca Moss
12 Dec 2024
Neonatal Care (Leave and Pay) Act 2023: How HR teams should prepare
Eden Scott is a team of recruitment professionals. While the information provided here is accurate to the best of our knowledge, it is intended for general guidance only. To ensure compliance with current and upcoming legislation, employers can consult with an HR or employment law specialist.
The Neonatal Care (Leave and Pay) Act comes into effect in April 2025. In this article, we’ve outlined the upcoming changes to UK employment law, and what HR teams and employers need to know.
The act will apply in Scotland, England and Wales. It won’t apply in Northern Ireland where employment law is devolved (source: UK Parliament).
What HR needs to know: NCL entitlement starts on day-one of a parent’s employment and can be taken in addition to maternity, paternity and shared parental leave.
The entitlement applies to parents of babies who receive neonatal care in hospital for seven or more full consecutive days within 28 days of their birth (source: Working Families).
What HR needs to know: To be entitled to NCP, an employee must be a parent that meets the NCL criteria. They must also meet the minimum service threshold of 26 weeks prior to requesting the leave and earn an average of £123 a week or more (source: Lewis Silkin).
What HR needs to know: Dismissing an employee for taking NCL or receiving NCP, or for any connected reason will be automatically deemed as unfair. An employee could seek compensation for unfair treatment or dismissal.
Small employers (businesses that have paid less than £45,000 in class one National Insurance contributions over the previous tax year) can claim back 103% of the NCP. Larger employers (who paid more than £45,000) can claim back 92% (source: Crossland Solicitors).
1 Maternity leave and pay: A guide for employers
2 Paternity leave and pay: A guide for employers
3 Shared parental leave and pay: A guide for employers
4 Adoption leave and pay: A guide for employers
The Neonatal Care (Leave and Pay) Act comes into effect in April 2025. In this article, we’ve outlined the upcoming changes to UK employment law, and what HR teams and employers need to know.
What is neonatal care?
Neonatal care is medical care provided to sick or premature newborn babies (source: Bliss).What is the Neonatal Care (Leave and Pay) Act 2023?
The Neonatal Care (Leave and Pay Act) 2023 aims to provide parents of babies with neonatal care needs with greater work protections and entitlements. This includes leave entitlement, pay entitlement and protection from dismissal or discrimination.The act will apply in Scotland, England and Wales. It won’t apply in Northern Ireland where employment law is devolved (source: UK Parliament).
When will the Neonatal Care (Leave and Pay) Act come into effect?
The Neonatal Care (Leave and Pay) Act will come into effect in April 2025 (source: Working Families).What changes will the Neonatal Care (Leave and Pay) act make to UK employment law?
There are three principal changes to be aware of: neonatal leave, neonatal pay, and dismissal and discrimination protections.
Neonatal Care Leave entitlement
Parents of babies with neonatal care needs will be entitled to up to 12 weeks of additional paid leave called Neonatal Care Leave (NCL).What HR needs to know: NCL entitlement starts on day-one of a parent’s employment and can be taken in addition to maternity, paternity and shared parental leave.
The entitlement applies to parents of babies who receive neonatal care in hospital for seven or more full consecutive days within 28 days of their birth (source: Working Families).
Neonatal Care Pay entitlement
Some parents of babies with neonatal care needs are entitled to Neonatal Care Pay (NCP).What HR needs to know: To be entitled to NCP, an employee must be a parent that meets the NCL criteria. They must also meet the minimum service threshold of 26 weeks prior to requesting the leave and earn an average of £123 a week or more (source: Lewis Silkin).
Protection from dismissal or discrimination
Parents that take neonatal care leave and neonatal care pay are protected from unfair treatment or dismissal. They cannot be penalised for any reason associated with neonatal care leave and pay (source: Lewis Silkin).What HR needs to know: Dismissing an employee for taking NCL or receiving NCP, or for any connected reason will be automatically deemed as unfair. An employee could seek compensation for unfair treatment or dismissal.
When can parents take Neonatal Care Leave?
Under the Neonatal Care (Leave and Pay) Act, parents who are employees will be able to take their Neonatal Care Leave when their maternity or paternity leave ends - essentially adding up to 12 weeks to their maternity or paternity leave. The leave must be taken within 68 weeks of the birth of the baby (source: Lewis Silkin).Can both parents take Neonatal Care Leave?
Yes, where it’s applicable, both eligible parents can take Neonatal Care Leave (it doesn’t need to be divided between parents) (source: Ciphr).Are both parents entitled to Neonatal Care Pay?
Yes, provided they meet the service and earnings threshold (detailed under Neonatal Care Pay entitlement above), both parents are entitled to Neonatal Care Pay.Can businesses reclaim Neonatal Care Pay from the government?
Yes, as with statutory parental leave and pay, businesses can reclaim Neonatal Care Pay from the government by lowering their National Insurance Contributions (NICs).Small employers (businesses that have paid less than £45,000 in class one National Insurance contributions over the previous tax year) can claim back 103% of the NCP. Larger employers (who paid more than £45,000) can claim back 92% (source: Crossland Solicitors).
Further reading
1 Maternity leave and pay: A guide for employers2 Paternity leave and pay: A guide for employers
3 Shared parental leave and pay: A guide for employers
4 Adoption leave and pay: A guide for employers
