How different employment types affect Statutory Neonatal Care Pay
Source: gov.uk (2025-06-20)

Find out about the different rules that apply to some employment types to decide your employee’s entitlement of Statutory Neonatal Care Pay.

Agency workers, casual or short-term contract employees

You can treat agency workers as employees for PAYE and Class 1 National Insurance contributions.

A casual or short-term contract employee is usually someone who works for you:
- as and when required
- on a series of short contracts of employment
You must pay them Statutory Neonatal Care Pay if:
- you deduct PAYE and Class 1 National Insurance contributions from their earnings (or would have if their earnings had been high enough)
- they meet the eligibility criteria for Statutory Neonatal Care Pay (https://www.gov.uk/employers-neonatal-care-pay-leave)
They can still get Statutory Neonatal Care Pay if:
- you have no work to give them
- you have work to give them, but they’re not available
- they’re sick or injured
- they cannot work due to parental leave, a paid holiday or statutory family leave (such as Statutory Maternity or Paternity Leave)
Find out what to do if your employee is already getting Statutory Neonatal Care Pay (https://www.gov.uk/guidance/employee-circumstances-that-affect-payment-of-statutory-neonatal-care-pay#employee-is-sick), and they tell you that they’re sick for more than 7 days.

Agricultural workers

Agricultural workers in England employed before 1 October 2013 are covered by the terms and conditions set out in the Agricultural Wages (England and Wales) Order 2012 (https://www.gov.uk/government/publications/agricultural-wages-order-2012-and-guidance).

You must pay agricultural workers Statutory Neonatal Care Pay, if both of the following apply:
- they were employed on or after 1 October 2023
- they meet the eligibility criteria for Statutory Neonatal Care Pay (https://www.gov.uk/employers-neonatal-care-pay-leave)
Find out more about agricultural workers’ rights (https://www.gov.uk/agricultural-workers-rights).

Directors

If your company was incorporated before 1 October 2009

If your company was incorporated (registered as a limited company) before 1 October 2009, the previous standard articles of association, which apply in default, still apply.

An ordinary resolution of the shareholders is needed to determine the director’s remuneration.

In such cases, the method of calculating the director’s remuneration by an annual figure will apply to work out their entitlement to Statutory Neonatal Care Pay.

Any payments made before the annual vote cannot be taken into account to calculate their entitlement to Statutory Neonatal Care Pay.

If your company was incorporated after 1 October 2009

There are new regulations if your company was incorporated (registered as a limited company) after 1 October 2009.

They provide for new articles of association and will:
- apply by default if other articles are not adopted
- allow the directors to determine a director’s remuneration
Directors decide how much, and when to pay remuneration.

A resolution is not needed from the company’s shareholders at the annual general meeting.

In such cases, director’s fees will be classed as earnings on the date they were paid, to work out their entitlement to Statutory Neonatal Care Pay.

Find out about running a limited company and the director’s responsibilities (https://www.gov.uk/running-a-limited-company).

Paid contractually

If a director is contractually paid a regular salary, work out their average weekly earnings like any other employee.

Paid by a determination of the directors (not a formal vote)

To work out their total average weekly earnings during the relevant period, add together:
- the monies paid
- any other payment of gross earnings
Use the date that the monies were paid, not the date of the shareholders’ resolution at the annual general meeting.

Paid both contractually and by formal vote

A director who is paid contractually (regular salary), might get a bonus or fees by formal vote.

Work out their average weekly earnings like any other employee, and if the formal vote falls in the relevant week, include the bonus or fees to work out their average weekly earnings.

Paid by formal vote only

If a director is paid by formal vote only:
- work out their average weekly earnings in the usual way
- use the date of the formal vote instead of their normal payday
A formal vote usually takes place at the company’s annual general meeting and is agreed in the company minutes.

Money drawn before a formal vote

Some directors draw money from the business before a formal vote.

Do not include this money to work out the director’s average weekly earnings, even if Class 1 National Insurance contributions were deducted at the time that the money was paid.

Employees that work abroad

Your employee may be able to get Statutory Neonatal Care if they work for you outside the UK, as long as:
- you’re liable to deduct Class 1 National Insurance contributions from their earnings (or would have if their earnings had been high enough)
- they meet the eligibility criteria for Statutory Neonatal Care Pay (https://www.gov.uk/employers-neonatal-care-pay-leave)
Find out more about National Insurance contributions if your employee works abroad (https://www.gov.uk/national-insurance-if-you-go-abroad).

Mariners

If your place of business is in the UK, and the mariner works on board a home-trade ship, they may be able to get Statutory Neonatal Care Pay, if they meet the eligibility criteria.

Supply teachers, seasonal workers or other irregular employment

You can treat these workers as employees for PAYE and Class 1 National Insurance contributions.

You must pay them Statutory Neonatal Care Pay if:
- you deduct PAYE and Class 1 National Insurance contributions from their earnings (or would have if their earnings were high enough)
- they meet the eligibility criteria for Statutory Neonatal Care Pay (https://www.gov.uk/employers-neonatal-care-pay-leave)
Most of the ‘agency workers’ rules apply for these types of workers.

They can be treated as having worked in the relevant week even if:
- you have no work to give them
- they’re sick or injured
- they cannot work due to parental leave, a paid holiday or statutory family leave (such as Statutory Maternity or Paternity Leave)
Find out what to do if your employee is already getting Statutory Neonatal Care Pay (https://www.gov.uk/guidance/employee-circumstances-that-affect-payment-of-statutory-neonatal-care-pay#employee-is-sick), and they tell you that they’re sick for more than 7 days.

Employees who have more than one job with you

If your employee has more than one job with you, they may be able to get:
- one lot of Statutory Neonatal Care Pay (to cover all the jobs)
- separate lots of Statutory Neonatal Care Pay (to cover each job)
One lot of Statutory Neonatal Care Pay

If you add all your employee’s gross earnings together to work out their Class 1 National Insurance contributions, you would do the same to work out their average weekly earnings.

Your employee can only get one lot of Statutory Neonatal Care Pay.

If your employee does not take the same time off from each job, they will lose some of their Statutory Neonatal Care Pay entitlement.

Separate lots of Statutory Neonatal Care Pay

If you do not add all your employee’s gross earnings together to work out their Class 1 National Insurance contributions, you would work out their average weekly earnings separately.

Your employee can get separate lots of Statutory Neonatal Care Pay.

They will not lose any of their Statutory Neonatal Care Pay entitlement, if their Statutory Neonatal Care Pay and Leave is taken at separate times.

Employees with more than one employer

If your employee works for another employer, and they meet the eligibility criteria for Statutory Neonatal Care Pay (https://www.gov.uk/employers-neonatal-care-pay-leave), they can get more than one lot of Statutory Neonatal Care Pay, one from each employer.

If you and another employer put together their individual earnings into one single payment of earnings, you will be treated as one employer and the employee will get one lot of Statutory Neonatal Care Pay.

You can agree the apportionment of Statutory Neonatal Care Pay that you will each pay to the employee.

If you cannot agree the apportionment that you will each pay, you can work it out separately. The amount will be based on the employee’s total gross earnings that you each pay.

The employee can take different Statutory Neonatal Care Leave from each employer.