Statutory Neonatal Care Leave and Pay
Having a baby in a neonatal unit can be a stressful and traumatic experience for working parents, especially when staying in hospital for an extended period of time. This can lead to further stresses when employees have limited parental leave and have not been able to spend the time they intended to, at home with their baby. From 6 April 2025, employees with babies in neonatal care born on or after this date will be immediately entitled to Statutory Neonatal Care Leave (SNCL).
This new change in law is projected to help thousands of parents who would otherwise need to use their standard parental leave (such as Maternity, Paternity, Adoption or Share Parental Leave) or other existing statutory leave entitlement. With SNCL, parents now receive extra leave specifically for neonatal care during what can be a difficult but crucial time for their child.
So, what do the rules look like after 6 April 2025?
- Parents now have up to 12 weeks’ leave and pay if their baby requires neonatal care.
- In order to be taken, neonatal care must have taken place, or begun, within the first 28 days of birth (beginning from the day after the baby is born). Care must then continue for at least 7 continuous days, beginning on the day after neonatal care starts.
- SNCL’s to be tagged onto the end of parental leave, so SNCL must be taken within 68 weeks of the baby’s birth, as typically a parent/parents with a baby admitted into neonatal care is likely to be on some other family leave at that time (e.g. Maternity, Paternity, Adoption leave etc.). The idea is that SNCL is used to compensate for the time the baby spent in the neonatal unit.
- SNCL requires 26 weeks of service and earnings above the Lower Earnings Limit (LEL) – at least £123 a week – mirroring the entitlement of parental leave pay. It will be payable at the statutory rate, or 90%, or your average weekly earnings – whichever is lower. The employer, as with parental leave, can claim back 92% of what is paid out.
- As with other parental leaves, employees are still entitled to the same employment rights.
For a full breakdown of Statutory Neonatal Care and Leave, read more on gov.uk.
What other things are there to consider FOR PARENTAL LEAVE?
- For multiple births, the maximum entitlement of 12 weeks does not increase.
- For parents with babies admitted into neonatal care before 6 April as well as babies who needed care after the 28 day period, they won’t be entitled to this new law change and therefore won’t receive additional leave.
- In the unfortunate event if the baby dies, any accrued leave and pay is to be taken within the 68 weeks from the baby’s birth.
So, how can employers best prepare for this PAYROLL change?
Like any changes in law, planning as early as possible is crucial for business owners to ensure they are not only compliant but their employees are supported as much as possible.
Here are some considerations:
- Look at what the process would look like for employees to apply for neonatal leave.
- Work alongside your Payroll and HR teams to ensure employment contracts, record systems, and handbooks are up to date to include Statutory Neonatal Care leave and pay.
- Consider training line managers on this change too, given that this can be a traumatic experience for employees.
ARE YOU PREPARED?
This new entitlement is likely to help many parents across the UK regarding their caring and work responsibilities, and provide even short relief when having to deal with the stress of looking after a baby that’s been in neonatal care.
Get in touch to see how we can support you with our outsourcing Payroll services, and we’ll ensure your business and your team are compliant in time for this change.
For more information about our Payroll service and fees, book a FREE consultation today, or speak to your main contact at TC Group.