Neonatal Care Leave and Pay: Key Takeaways from our latest Retail Forum

Following our recent Legislation Update Forum on Thursday, 20 March, at our London Headquarters, we’ve tried to put together a simple guide to help employers understand the upcoming Neonatal Care Leave and Pay legislation. The session was led by Mathew Akrigg from the Chartered Institute of Payroll Professionals (CIPP),  chaired by CIPP board member Dianne Hoodless, with guests from a range of leading UK retail businesses.

From 6 April 2025, this new law will give eligible employees extra leave and financial support if their baby needs neonatal care. Parents could take up to 12 weeks of leave on top of existing parental leave entitlements, helping to ease the pressure during what can be a very stressful time.

This is a complex and evolving topic, with legislation details still being refined as we approach the implementation date. A huge thank you to Matt for breaking down the key aspects and helping us navigate these changes with clarity.

What is Neonatal Care Leave?

Neonatal Care Leave is designed to support working parents when their baby needs hospital care shortly after birth. This new right will apply from an employee’s first day at work, meaning there is no minimum length of service needed to qualify.

Who is Eligible for Neonatal Care Leave?

Employees can take this leave if they have a parental relationship with the baby, including birth parents, adoptive parents, or partners of a parent.

To qualify:

• The baby must need neonatal care in a hospital or similar setting under a medical professional’s supervision.
• The care must begin within 28 days of birth and last for at least seven consecutive days.

How Long is Neonatal Care Leave?

Eligible parents can take up to 12 weeks of additional leave, based on how long their baby is in hospital. This is in addition to maternity, paternity, adoption, and shared parental leave.

What Are the Notice Requirements?

The notice needed to take leave depends on when the baby is in care:

• Immediate leave: While the baby is in hospital and for seven days after, parents can take leave in blocks of at least one week, giving notice as soon as possible.
• Later leave: After this initial period, leave must be taken in one go, with written notice required 15 days before a single week of leave or 28 days before two or more weeks.

What the Neonatal Care Act Means for Parents in Your Workforce

For parents in your workforce, this new legislation is a lifeline. It gives them the time, financial support, and job security they need to focus on their baby’s health without additional stress.

Having dedicated neonatal leave means parents can spend vital time with their newborns in hospital without worrying about using annual leave or facing financial difficulties. The statutory pay helps ease financial strain at an already difficult time, ensuring parents aren’t forced to choose between work and being there for their child.

Job security is another key benefit. With this leave now enshrined in law, employees can take time off without fear of losing their role, giving them much-needed peace of mind.

Additional Resources

For further information on Neonatal Care Leave and Pay, we recommend the following resources, and you can of course call the CIPP advice line if you’re a member.

• UK Government Guidance on Neonatal Care Leave and Pay
• Chartered Institute of Payroll Professionals (CIPP) Updates
• Working Families: Support for Parents and Employers

How Should Employers Prepare?

With this new law coming into effect, businesses should take steps now to ensure they are ready:

• Update policies: Make sure HR policies reflect the new leave and pay entitlements.
• Adjust payroll systems: Ensure payroll teams can process Neonatal Care Pay correctly.
• Train managers: Equip line managers with the knowledge to handle leave requests with understanding and efficiency.
• Plan ahead: Consider how workloads will be covered when employees take this leave.
• Communicate clearly: Keep employees informed about their rights and the process for requesting leave.

Final Thoughts

With Neonatal Care Leave and Pay becoming law in April 2025, now is the time for businesses to prepare. Supporting employees through these moments isn’t just a legal requirement – it’s an opportunity to show that your organisation truly cares about its people and their wellbeing.

At The Portfolio Group, we help businesses find exceptional Payroll and HR professionals who can ensure compliance with employment laws and support your workforce effectively. Whether you need payroll specialists, HR experts, or finance professionals, we can connect you with the right talent.

If you need recruitment support or advice on preparing for these changes, get in touch today. We’d love to help.

Thanks again to everyone that joined us – You can connect with me on LinkedIn or email me directly if you’d like further advice or an invite to our next event – I’d love to chat!

Barrie Wreford