New Neonatal Leave: What Small Businesses Need to Know
Big news for small business owners – from 6 April 2025, a new law is coming into play that gives parents extra time off if their newborn needs hospital care. This change is designed to support families during what can be an incredibly stressful time, but it also means you might need to tweak your HR policies. Here’s what you need to know -
What’s Changing?
Extra Leave for Parents: Employees will now have the right to take up to 12 weeks of Neonatal Care Leave if their baby is admitted to hospital within the first 28 days of birth and stays for seven or more days.
Statutory Pay Entitlement: If they’ve been with you for at least 26 weeks and earn above the statutory threshold, they’ll also get Statutory Neonatal Care Pay (SNCP), similar to other parental leave payments.
Day-One Right: Unlike some other types of parental leave, this is a right from day one of employment. No minimum service needed.
What Does This Mean for You?
You’ll need to make some updates to your policies and processes, including:
✔ Updating your employee handbook – so your team knows exactly what’s available.
✔ Checking your payroll system – to make sure it can handle SNCP payments.
✔ Communicating the changes – because clarity now means fewer headaches later!
What Are Your Options?
Some businesses will stick to the statutory minimum, while others might choose to offer extra support – for example, extending neonatal leave beyond 12 weeks or topping up pay. Either way, you’ll need to ensure your policies are clear and legally sound.
Need Help Updating Your Policies or Deciding on Enhancements?
Keeping up with employment law changes can feel like a moving target – but you don’t have to tackle it alone. Our PAYG HR service is designed for small businesses that need expert HR support, without the commitment of a full-time retainer.
Whether you need:
A policy update – ensuring your employee handbook and contracts reflect the new neonatal leave entitlements.
Guidance on enhancing statutory leave – weighing up whether to offer additional paid time off or support beyond the legal minimum to strengthen your employer brand.
Advice on how this impacts your business – from managing payroll adjustments to communicating changes to your team.
We’ll help you navigate these changes smoothly and make decisions that align with your business goals. Book a free discovery call today to chat through your options and find the best approach for your business.