The Neonatal Care (Leave and Pay) Act 2023 applies to England, Wales, and Scotland. Employment law is devolved in Northern Ireland, and similar provisions would need to be introduced separately by the Northern Ireland Executive. 

Statutory Neonatal Care Leave (SNCL) 

• Eligible employees will be entitled to up to 12 weeks’ leave from day one of employment, with no minimum service requirement. 

• SNCL must be taken within 68 weeks of the child’s birth and can be added to other statutory leave (e.g., maternity or paternity leave). 

Statutory Neonatal Care Pay (SNCP) 

• Employees with at least 26 weeks’ continuous service at the relevant date and who meet minimum earnings thresholds will qualify for statutory neonatal care pay. 

• SNCP will be paid at the same rate as statutory paternity pay. 

Eligibility Criteria 

• The neonatal care must begin before the child is 28 days old. 

• The care must last for a minimum of seven consecutive days to qualify for SNCL and SNCP. 

Employees taking SNCL will receive the same protections as those taking other forms of statutory family leave, including: 

• The right to return to the same or a suitable role. 

• Protection from redundancy during and after their leave period. 

• Protection from detriment and unfair dismissal for taking SNCL. 

Businesses that fail to comply with the new statutory entitlements could face employment tribunal claims from affected employees. Failure to provide SNCL could result in claims for unlawful detriment or automatic unfair dismissal, while non-payment of SNCP could lead to financial penalties and enforcement action by HMRC. Employers should ensure their policies and payroll systems are updated before April 2025 to avoid potential legal disputes. 

The Neonatal Care (Leave and Pay) Act 2023 only applies to employees, meaning self-employed individuals, freelancers, and non-employee workers (e.g., those on casual or zero-hours contracts) are not entitled to SNCL or SNCP. 

What Should Businesses Do? 

• Review Contracts: Businesses engaging freelancers or non-employee workers should review their contracts to clarify whether any parental leave entitlements exist under their engagement terms. 

• Consider Policies for Non-Employee Workers: While there is no legal obligation to offer equivalent neonatal care leave to non-employees, businesses may wish to introduce voluntary support measures (e.g., unpaid leave or discretionary payments) to align with internal family-friendly policies. 

• Be Mindful of Worker Classification Risks: Companies that misclassify workers who are, in reality, employees may still be liable for failing to provide statutory entitlements. Employers should assess employment status carefully to mitigate this risk. 

The introduction of SNCL and SNCP addresses a long-standing gap in employment rights, ensuring that parents of premature or sick babies do not have to choose between financial stability and being present for their newborn’s care. For many parents, this legislation provides essential time to bond with their baby, support their recovery, and alleviate the financial pressures of unpaid leave. 

Employment Rights Minister Justin Madders highlighted that these changes provide certainty and security for parents and employers, giving families the confidence to focus on what matters most: caring for their child. 

Employers should review their current family leave policies and payroll systems to prepare for the 6^th April 2025 implementation. Awareness campaigns should also be considered to ensure employees understand their rights and entitlements under this new legislation. 

We will continue to monitor any further developments and provide updates as required.