Payroll

Frequently Asked Questions: Neonatal Care Leave and Pay

Elena Segura

Co-Founder

Dec 10, 2024

Frequently Asked Questions: Neonatal Care Leave and Pay

With the introduction of the Neonatal Care (Leave and Pay) Act 2023, parents of newborns requiring neonatal care will be entitled to up to 12 weeks of paid leave starting in April 2025. Below are some frequently asked questions to help both employees and employers understand the changes and how they will affect the workplace.

1. What is Neonatal Care Leave and Pay (NCL and NCP)?

Neonatal Care Leave (NCL) and Neonatal Care Pay (NCP) provide parents with up to 12 weeks of paid leave if their newborn requires neonatal care. This new statutory entitlement will come into force in April 2025 and is in addition to other leave entitlements such as maternity, paternity, and shared parental leave.

2. Who is eligible for NCL and NCP?

To qualify for Neonatal Care Leave (NCL) and Neonatal Care Pay (NCP), the following conditions apply:

  • NCL: Available to parents whose child spends at least 7 continuous days in neonatal care within the first 28 days after birth.

  • NCP: Employees must have at least 26 weeks of continuous service and earn an average of at least £123 per week as of April 2024.

These rights apply to parents of babies up to the age of 28 days.

3. How long can parents take Neonatal Care Leave?

Parents can take up to 12 weeks of leave, with a minimum entitlement of one week. This leave can be taken in two tiers:

  • Tier 1: While the baby is still in neonatal care or within the first week after discharge.

  • Tier 2: After the baby is discharged, but within 68 weeks of the baby’s birth.

4. What qualifies as neonatal care?

Neonatal care includes any care provided in a hospital or other care settings, such as medical, palliative, or end-of-life care, provided under the supervision of a consultant with ongoing monitoring. It also covers outreach care directed by a consultant.

5. How is Neonatal Care Pay calculated?

Neonatal Care Pay (NCP) is paid at the same rate as Statutory Maternity Pay (SMP), which is currently £172.48 per week (as of April 2024). This pay is in addition to other statutory leave entitlements.

6. Can parents take NCL and NCP with other parental leave?

Yes, NCL and NCP are in addition to other statutory parental leave entitlements, such as maternity, paternity, and shared parental leave. Parents can take these entitlements consecutively or as needed, depending on their circumstances.

7. When can parents take Neonatal Care Leave?

NCL must be taken within 68 weeks of the baby’s birth. Leave can be taken in Tier 1 (while the baby is in neonatal care or within the first week after discharge) or Tier 2 (up to 68 weeks after birth).

8. What do employers need to do?

Employers should start preparing for the introduction of Neonatal Care Leave and Pay by taking the following actions:

  • Update Policies: Ensure that your company’s leave and pay policies reflect the new statutory rights for Neonatal Care Leave and Pay.

  • Update Payroll Systems: Make the necessary changes to your payroll systems to accommodate these new entitlements.

  • Employee Communication: Employers should inform employees about the new rights, including the procedures for applying for neonatal care leave and pay. Clear communication will help employees understand the new benefits and how they can access them.

9. When will the new rights come into effect?

The new rights will come into force on 6 April 2025. Parents will be able to apply for Neonatal Care Leave and Pay starting from this date.

10. Where can I learn more?

For more detailed information about Neonatal Care Leave and Neonatal Care Pay, and how the new laws will affect you, visit the official Neonatal Care Leave and Pay Act 2023 on the UK Government’s website. Stay informed to ensure you’re ready when these changes take effect.

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