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News • 22.01.25

News update: New neonatal care leave and pay law

Helen Hancock
In House Employment Lawyer

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The UK Government has introduced a groundbreaking statutory right to Neonatal Care Leave and Pay, effective 6th April 2025. This change will ensure parents of newborns needing neonatal care receive essential time off and financial support during challenging circumstances.

At SafeHR, we’re committed to helping businesses navigate these changes with ease and confidence, ensuring compliance while supporting employees.

What’s changing?

Eligibility:

  • Available to employees with a parental or personal relationship with a baby who requires neonatal care (medical or palliative care).
  • The care must last for at least seven consecutive days, starting within 28 days of birth.

Leave entitlement:

  • Up to 12 weeks of Neonatal Care Leave is available.
  • This leave can be taken while the baby is receiving neonatal care, or at the end of maternity/paternity/adoption leave or within 68 weeks of the baby’s birth.
  • It is a Day 1 right, meaning it applies regardless of the employee’s length of service.

Pay entitlement:

  • Statutory Neonatal Care Pay (SNCP) is available for employees with 26 weeks of continuous service and earnings of at least £125 per week (from April 2025).
  • The pay rate is set at the statutory rate or 90% of average weekly earnings, whichever is lower.

Reimbursement for employers:

  • Small employers (those paying less than £45,000 in gross NICs annually) can reclaim 103% of SNCP.
  • Larger employers can reclaim 92%.

How SafeHR is supporting employers

At SafeHR, we understand the challenges of implementing new employment legislation. That’s why we’re working proactively to help businesses prepare:

Policy updates:

We’re drafting a comprehensive Neonatal Care Leave and Pay Policy to help you implement these changes seamlessly. In addition, we’ll update your existing family leave policies to ensure alignment with the new law.

Software and systems ready:

Our SafeHR software and payroll systems are being updated to include these new entitlements. This ensures you can manage leave requests and pay calculations accurately and efficiently.

Expert guidance:

Our experienced HR team is here to provide tailored advice and support, whether you need help updating policies, training managers, or handling employee queries.

Why this matters

Introducing Neonatal Care Leave and Pay is a crucial step in recognising the unique challenges faced by families with babies needing neonatal care. It offers employees peace of mind and financial stability during a difficult time, fostering loyalty and trust in your organisation.

By partnering with SafeHR, you can ensure your business is compliant and supportive, creating a workplace that values its people while staying ahead of regulatory changes.

Next steps

Stay ahead by:

  • Preparing your teams for these changes with training and updated policies.
  • Leveraging SafeHR’s software to handle new leave and pay requirements seamlessly.
  • Reaching out to our HR consultants for practical advice tailored to your business.

Contact us today at 0330 058 6464 or email hrsupport@alcumus.com for expert guidance.

For further details, visit the Government’s official announcement: Parents to Receive Day 1 Right to Neonatal Care Leave and Pay.

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Let us help you navigate these changes while prioritising the wellbeing of your employees and the success of your business.

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