Neonatal Care Leave and Pay: What Businesses Need to Know Before April 2025.

From 6 April 2025, UK businesses must comply with the Neonatal Care (Leave and Pay) Act 2023, which introduces Neonatal Care Leave (NCL) and Statutory Neonatal Care Pay (SNCP). These changes support parents whose babies require neonatal care, allowing them additional leave and financial support during a challenging time.

Employers need to prepare now to ensure legal compliance and support employees effectively. Here’s what you need to know.

What is Neonatal Care Leave (NCL)?

• Available from day one – No minimum service requirement.
  Up to 12 weeks of additional leave – Taken on top of maternity, paternity, and parental leave.

• Applies to parents whose baby is in neonatal care – Within 28 days of birth for at least seven consecutive days.

• Must be used within 68 weeks of birth – Allowing flexibility for parents.

What is Statutory Neonatal Care Pay (SNCP)?

To qualify, employees must have:
✔ 26 weeks’ continuous service with their employer.
✔ Average weekly earnings above the Lower Earnings Limit.
✔ SNCP will be paid at the lower of a statutory flat rate or 90% of weekly earnings.

How Businesses Can Prepare for Compliance

1. Update HR Policies & Contracts

Review existing leave policies to ensure compliance.
Update employee handbooks to include neonatal care leave entitlements.
Ensure contracts do not contain conflicting terms.

2. Train HR & Line Managers

HR and managers should be aware of eligibility criteria and leave request processes.
Encourage a supportive workplace culture where employees feel comfortable requesting leave.

3. Adjust Payroll Systems

Work with payroll to implement SNCP payments correctly.
Ensure leave tracking systems are in place.

4. Establish a Clear Notification Process

Employees should know who to notify when requesting neonatal care leave.
Set up a straightforward HR process for documentation and approvals.

5. Communicate with Employees

Proactively inform staff about their new rights.
Provide written guidance via email, intranet, or staff meetings.

Get Your Business Ready with Castle HR

Ensure compliance with expert HR support. Contact Castle HR & Training Solutions today for tailored advice and policy updates.

info@castlehr.co.uk | 01723 344134