Neonatal Leave Explained: Pay, Tiers & Notice Rules for HR

What is neonatal leave

Neonatal leave, legally known as Neonatal Care Leave, is a new form of statutory family leave being introduced across Great Britain from 6 April 2025. It gives extra time off to eligible parents whose baby is admitted to a neonatal unit shortly after birth.

This new right aims to support baby’s parents when a newborn requires medical care for at least one week. If a baby is in neonatal care for a continuous period of seven days or more, parents will have the right to claim neonatal care leave on top of any statutory leave they already get.

It applies whether the baby is receiving life care, ongoing monitoring, or other types of hospital care.

Who it applies to and eligibility

The right to neonatal care leave is a day-one entitlement. There is no minimum continuous service requirement for taking the leave itself.

Eligibility applies when:

• The baby is born on or after 6 April 2025

• The baby is admitted to neonatal care within 28 days of birth

• The care lasts for seven consecutive days or more

• The individual is one of the baby’s parents, which includes:

  • Biological parents

  • Adoptive parents

  • Intended parents through surrogacy

  • Partners in an enduring family relationship

  • Civil partners and spouses

Each eligible parent may take this leave individually, even if both work for the same employer.

Duration, tiers and timing of leave

When a baby needs critical care, parents shouldn’t have to choose between hospital visits and payslips.

Measuring qualifying care periods

The length of neonatal leave is tied directly to the amount of qualifying hospital care a baby receives.

• One week of neonatal leave is earned for each full week the baby receives neonatal care

• This applies only if the care is continuous

• The total maximum amount of leave that can be taken is 12 weeks per parent

Tier 1 vs tier 2 leave

Neonatal leave has two categories (or “tiers”) based on timing and flexibility:

Tier 1

• Covers each week the baby is in neonatal care, plus one week after leaving hospital

• Can be taken in non-continuous blocks

• Leave must be used before the baby reaches 68 weeks old

Tier 2

• Applies after tier 1 ends

• Can only be taken in one continuous block

• Must also be taken before 68 weeks after the child’s birth

This structure helps parents spread their leave if needed during hospital care, but encourages return to routine after discharge.

Coordination with other parental leave

Neonatal leave can be taken in addition to:

• Maternity leave

• Paternity leave

• Shared parental leave

• Adoption leave

• Other statutory family leave types

Important points:

• Leave and pay must not overlap; neonatal care leave can only start after other types of family leave end

• It extends the overall time parents can be off, not replaces or interrupts existing entitlements

• Parents may take neonatal care leave immediately after shared parental leave or maternity leave ends

This coordination provides flexibility without disrupting other statutory leave rights.

Statutory neonatal care pay (SNCP)

Parents can’t be fully present at the hospital if they’re worrying about their payslip.

Pay entitlement and rates

Statutory Neonatal Care Pay (SNCP) supports parents during neonatal leave if they meet certain conditions.

• Payable for up to 12 weeks

• Weekly amount: £187.18 or 90% of average weekly earnings, whichever is lower

• Subject to minimum earnings threshold (similar to statutory family pay rules)

• Employers can choose to offer enhanced neonatal care pay if they wish

To receive neonatal care pay, the employee must:

• Qualify for neonatal care leave entitlement

• Meet minimum service and earnings criteria

Qualifying service requirements

Unlike the leave itself, SNCP requires:

• At least 26 weeks’ continuous service with the same employer by the relevant week

• Average earnings above the lower earnings limit for national insurance

• The parent must still be employed at the relevant week

This mirrors rules seen with paternity leave and shared parental leave, keeping things familiar for HR managers and payroll teams.

Notification, notice periods and procedural requirements

Proper notice helps everyone plan better; from HR to the support team standing by at the neonatal unit.

Notice requirements by tier

Employers must prepare for two different notice rules, depending on which category of neonatal leave the employee is taking.

The 15-day rule for Tier 1 allows flexibility as baby receives neonatal care, especially in cases where weeks are taken separately due to long hospital care.

Tier 2 leave is more structured. It requires one continuous block to be taken by the 68-week deadline following the baby’s birth.

Required information in notification

According to ACAS guidance, when an employee wishes to claim neonatal care leave, their written request should include:

• Their full name

• The baby’s birth date

• The start and end dates of the baby’s hospital stay

• The dates of intended leave

• A declaration of eligibility, confirming their relationship to the child (e.g. baby’s mother, adoptive parent, or partner in an enduring family relationship)

• Confirmation that the baby was admitted to neonatal care within 28 days of birth

• Statement confirming that the baby received at least one week of neonatal care

Having a template or digital form ready can simplify this process for both the employee and the HR team.

Record-keeping and policy integration

To remain compliant with the neonatal care leave entitlement, employers should:

• Update internal family leave policies to include neonatal leave

• Integrate this new entitlement into parental leave and statutory leave documentation

• Maintain secure records of:

  • Leave notifications

  • Dates of hospital care

  • Pay entitlements

  • Confirmations of eligibility

This will support accurate payroll, ensure consistency, and prepare the business for possible audits or queries from healthcare professionals or statutory bodies.

Employer obligations and protections

Giving parents the time they need starts with respecting their rights at work.

Employment protection during leave

While on neonatal care leave, employees are protected by the same rights that apply to other forms of statutory family leave:

• Right to return to the same job, or an equivalent one

• Retention of all contractual benefits during leave (except pay, unless enhanced)

• Protection from unfair dismissal

• Protection from redundancy detriment

Employers must not treat parents unfairly due to the baby’s admission to neonatal care, even if the leave lasts up to 12 consecutive weeks.

Policy inclusivity for partners and multiple births

The legislation recognises modern family structures and applies equally to:

• Biological parents

• Adoptive parents

• Intended parents through surrogacy

• Spouses, civil partners, and long-term partners

Each eligible parent has an individual entitlement, so both may take neonatal leave separately.

In cases of more than one baby (e.g. twins), leave accrues per baby unless their care periods overlap.

Special considerations (adoption, surrogacy, bereavement)

The law provides additional care in sensitive cases:

• Surrogacy and adoption: Entitlement applies if the child is receiving care and the parent is the legal or intended carer

• Bereavement: Parents are still entitled to receive neonatal care pay and take neonatal leave, even if the baby dies during hospital care

• Disrupted placements (e.g. in adoption leave): Employers should follow the spirit of the law and provide support accordingly

Each case should be handled with discretion and sensitivity, ideally with guidance from HR or legal advisors.

Administrative and payroll implementation

Even the most caring policy needs back-end support to run smoothly.

Updating HR policy and payroll systems

To implement the neonatal care leave entitlement, employers must:

• Update all HR policies and staff handbooks

• Add neonatal leave as a separate category in absence tracking tools

• Configure payroll systems to calculate Statutory Neonatal Care Pay (SNCP) correctly, based on:

  • Average earnings

  • Number of qualifying full weeks

  • National minimum earnings threshold

Close coordination between HR, payroll, and IT will reduce errors and delays in receiving care pay.

Training managers and HR staff

Managers and HR teams should receive structured training on:

• Eligibility rules (including for intended parents and surrogacy)

• The difference between tier 1 and tier 2 leave

• Notice and evidence requirements

• Communication protocols during baby’s hospital care

• Supporting staff dealing with medical emergencies

Frontline managers should be prepared to respond with empathy and accuracy when informed of a baby in neonatal care.

Workforce planning implications

Taking up to 12 weeks of leave per eligible parent (often with little advance warning) has operational consequences.

HR planners should:

• Forecast potential staffing gaps

• Build contingency plans into rotas

• Coordinate neonatal leave with parental leave, maternity, and paternity leave

• Use flexible cover arrangements or temporary hires if needed

Especially in small teams, a proactive plan will reduce disruption and maintain fairness for all staff.

Challenges and considerations

Policies look tidy on paper, but real life is rarely tidy.

Managing complexity in leave scheduling

The combination of:

• Tiered leave

• Non-continuous blocks

• Add-ons to statutory family leave

…makes leave planning more complicated than standard shared parental leave or maternity leave alone.

Use of leave tracking tools or scheduling software is highly recommended.

Fairness and morale among non-eligible employees

Staff without children or those whose babies weren’t hospitalised may feel disadvantaged.

To support fairness and transparency:

• Communicate clearly why neonatal care leave exists

• Highlight similar supports available to other staff (e.g. carer’s leave, mental health resources)

• Encourage inclusive workplace policies that support a range of life needs

Potential financial or operational strain

For some employers, particularly small businesses, offering neonatal care pay (even at statutory levels) can be difficult.

Risks to consider:

• SNCP may be reimbursed by HMRC, but admin burdens still apply

• Additional costs if employers provide enhanced neonatal care pay

• Extended absences could affect productivity and service delivery

Despite these pressures, properly managing family leave improves long-term retention and staff wellbeing.

How Shiftbase helps manage neonatal leave and workforce planning

Handling unplanned absences like neonatal care leave can put pressure on your team schedules, payroll accuracy, and internal coordination. With Shiftbase, you can stay in control, even when the unexpected happens.

Our all-in-one workforce management software offers:

• Employee scheduling: Quickly adjust rotas to cover longer leave periods without disrupting operations

• Time tracking: Monitor working hours and ensure compliance when leave and return dates shift

• Absence management: Keep track of different types of leave, including tiered neonatal care leave, from one place

Whether you're managing statutory neonatal care pay, forecasting consecutive weeks of absence, or keeping teams covered during extended hospital care, Shiftbase makes it simpler and more reliable.

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