The Neonatal Care (Leave and Pay) Act 2023, which came into effect in April 2025, introduced a new statutory right for employees to take neonatal care leave (NCL) and, in many cases, receive neonatal care pay (NCP).
The associated legislation has been subject to some criticism, particularly due to its complexity. However, these concerns have been eased by the publication of ACAS guidance, which was updated in early 2026, which outlines the relevant rules and provides practical tips for employers.
The right to NCL
All employees are entitled to NCL from the first day of employment.
An employee is entitled to take NCL where their child begins neonatal care within 28 days of birth and this continues for at least seven consecutive days, starting with the day after the care begins.
Neonatal care refers to medical care provided to newborn babies, often where they are born prematurely, are ill or injured at birth or have a low birth weight. It includes medical care received in a hospital and outplacement treatment following discharge from a hospital, as well as palliative or end of life care.
Where eligible, employees are entitled to take one week of NCL per each “qualifying period” their child spends in neonatal care, up to a maximum of 12 weeks. A “qualifying period” means a full one-week period that their child receives uninterrupted neonatal care. As NCL accrues in full weeks, the parent of a baby who receives neonatal care for ten days, for example, would be entitled to one week of NCL.
NCL must always be taken within 68 weeks of the child’s birth. However, the precise rules depend on whether the leave is taken in a “tier 1” or “tier 2” period. The “tier 1” period means the period from the start of neonatal care until the week after the care ends; the “tier 2” period means any period outside of “tier 1”. This “tier 2” period is intended to allow employees to continue the care at home.
The relevant “tier” of leave will affect, for example, how much notice the employee must give of their leave. Employees must give notice at the start of each week of “tier 1” leave, or 15 days’ notice to take “tier 2” leave.
Relationship with other forms of leave
NCL is separate to other family leave entitlements, such as maternity and paternity leave, so employees can add their NCL onto the end of these periods of leave.
NCL also confers similar employment protections to maternity leave, such as the right to return to the same or a similar role upon return and additional protections from redundancy where the NCL has lasted for six consecutive weeks.
The right to NCP
Employees who are entitled to NCL may also qualify for NCP where they have been continuously employed for 26 weeks before the neonatal care started. It is paid at the rate set by the government each April.
Guidance for employers
The ACAS guidance includes practical suggestions for employers managing NCL.
In particular, it suggests employers should keep in touch with employees but recognise that it is a difficult period for them. Therefore, it suggests directing them to its employee assistance programme and/or relevant charities, like Bliss, for additional information and support.
Employers should also ensure they have implemented a clear policy which provides details of NCL/NCP entitlements, including the relevant eligibility and notice requirements. Importantly, managers should fully understand this policy, ideally through training, so they are able to deal with employees taking NCL appropriately. This will ensure they respond sensitively and consistently, ensuring staff are well-supported and fairly treated.
Ethan Diver is a solicitor at Taylor Walton Solicitors www.taylorwalton.co.uk
