From April 2025, employees whose babies require specialist neonatal care will be entitled to up to 12 weeks of extra paid leave – on top of their usual maternity, paternity, or shared parental leave. It’s a long-overdue change aimed at supporting parents through one of the toughest starts to family life.

For in-house lawyers working closely with HR, it means new obligations, new policies, and a good opportunity to strengthen how your business supports working parents.

Here’s what’s changing – and how to prepare.

The headline: a new statutory right to neonatal care leave and pay

Under the Neonatal Care (Leave and Pay) Act 2023, employees will be entitled to take up to 12 weeks of neonatal leave if their baby needs hospital care in the first 28 days after birth. The leave will be:

• Available from day one of employment
• In addition to other parental leave rights
• Paid, provided the employee meets eligibility criteria for statutory pay
  

It’s designed to help parents stay close to their newborns without burning through holiday or eating into other leave entitlements.

What the draft Acas Code says

Acas has now published a draft Code of Practice on how employers should handle requests for neonatal care leave. It sets expectations around:

• Handling requests promptly and sensitively
• Avoiding discrimination or disadvantage for those taking leave
• Supporting employees with clear policies and fair procedures
  

It’s not legally binding, but it will be taken into account by tribunals – so it’s well worth aligning your internal approach now.

What this means for in-house lawyers

If you haven’t already reviewed your policies, now’s the time. You’ll want to:

• Draft or update your family leave policies to include neonatal care entitlements
• Train line managers on how to handle leave requests with empathy and consistency
• Review contracts and handbooks for alignment with statutory rights
• Ensure payroll systems can process neonatal care pay correctly
• Check internal communications are clear, supportive, and legally sound

It’s also a good moment to step back and sense-check your broader approach to family-friendly working – especially if attraction and retention are top of the business agenda.‍

A chance to lead with empathy‍

Beyond compliance, this is an opportunity for employers to show up for their people when it matters most. The neonatal care leave rules recognise the emotional, physical, and financial strain that early hospital stays can cause – and in-house lawyers can play a key role in helping organisations respond with compassion and clarity.