COMPLIANCE
Understanding the intricacies of statutory neonatal care leave and pay
Lauren Handley MCIPPdip, Content Developer, IPPE, delves into some of the complexities of the new statutory entitlement introduced from 6 April 2025
W e first looked at statutory neonatal care leave and pay back in the October 2024 issue of Professional magazine (https://ow.ly/ Cl3k50VkXpP), but now that it’s been implemented, we thought it would be helpful to revisit it and to focus on some of the intricacies of the new entitlement. So, neonatal care leave and pay is finally here. Introduced in the Neonatal Care (Leave and Pay) Act 2023, this new entitlement allows employed parents of children in neonatal care to take leave and pay to support their babies during this difficult time. According to the Government, these new measures are to benefit around 60,000 new parents in England, Scotland and Wales. The provisions aren’t straightforward and contain many nuances. The first being the two different types of leave which can be taken – these are known as tier 1 and tier 2 leave. Statutory neonatal care leave (SNCL) is available in relation to a baby who’s admitted into neonatal care before the end of the 28-day period. This period begins the day after the baby is born. The care must last for a continuous period of seven days or more to accrue entitlement. The 28-day period allows for situations where a baby is discharged and later admitted to neonatal care or is admitted into neonatal care more than once. A further week of
“This new entitlement allows employed parents of children in neonatal care to take leave and pay to support their babies during this difficult time”
neonatal care leave will accrue for every seven continuous days a baby spends in care, up to a maximum of 12 weeks. The leave must be taken within 68 weeks of the child’s birth and can be taken in two different ways depending on the employee’s circumstances, either as tier 1 or tier 2 leave. Two tiers to consider Let’s provide a quick overview of what tier 1 and 2 leave are. Tier 1 leave is taken while the child is in neonatal care or in the first week after they have been discharged from care. As leave is accrued every seven continuous days in neonatal care, this can be taken as soon as it has been accrued and can be taken in as many blocks as needed, provided they’re in one or more whole weeks. Notice for tier 1 leave cannot be withdrawn once requested. Tier 2 leave, on the other hand, is any period of leave taken outside of the time when tier 1 leave can be taken. Essentially what this means is that the leave can be taken when the child is no longer receiving
neonatal care. This could include where the leave isn’t requested immediately following the child’s admission or couldn’t be taken due to compulsory leave, such as adoption or maternity leave, which must be taken prior to SNCL being taken. Tier 2 leave must also be taken as one continuous period. Understanding some of the nuances of SNCL Let’s look at some of the nuances around taking SNCL. Firstly, a period of pre-booked child- related leave such as paternity leave or shared parental leave can interrupt a period of tier 1 SNCL. So, if an employee has pre-booked paternity leave, they can pause their SNCL to take the booked leave and continue their SNCL entitlement afterwards. This can result in the pre-booked leave interrupting part weeks of SNCL. The paternity leave must be taken in whole weeks and any unused days of SNCL can be used when the pre-booked leave is finished. This is the only instance where SNCL can be taken in partial weeks, but it
| Professional in Payroll, Pensions and Reward | May 2025 | Issue 110 20
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