A new employee right to neonatal care leave, and potentially pay, came into force on 6 April, 2025, prompting one pay and reward expert to describe it as “a fundamental shift in how businesses support employees” at a stressful time.
Under the neonatal care act, parents of babies who are admitted into neonatal care up to 28 days old and who have a continuous stay in hospital of seven full days or longer will be entitled to take the leave.
The new day one right means that parents will not have to return to work or use their existing leave to stay with their babies while they are in hospital. The government said this will help around 60,000 new parents.
Parents will be able to take up to 12 weeks of leave, which will be paid for eligible parents, in addition to any other leave they may be entitled to, including maternity and paternity leave.
The new rules are part of government commitments to support families and protect the wages of working people as part of its Plan for Change.
Ben May, senior manager payroll compliance at ADP UK, said: “The neonatal care act isn’t just a legislative change – it’s a fundamental shift in how businesses support employees during potentially a very stressful time in their lives. Companies that prioritise preparation can avoid potential challenges related to legal compliance, workforce stability, and maintaining a positive reputation.”
He said that employers should be prepared to ensure their processes and procedures are updated to reflect the changes.
“Employees will be entitled to up to 12 weeks of statutory neonatal care leave and employees who meet the eligibility requirements may also be entitled to statutory neonatal care pay,” he added.
In January employment rights minister Justin Madders said that parents of children in neonatal care “have more than enough to worry about without being concerned about how much annual leave they have left or whether they’ll be able to make ends meet”.
The minister said: “This entitlement will deliver certainty to them and their employers, setting baseline protections that give them the peace of mind to look after the one thing that matters most – their newborn baby.”
