Last month, the Australian Government passed landmark legislation called the Fair Work Amendment (Baby Priya’s) Act 2025, providing additional protections for employees who receive employer-funded paid parental leave.
Under Baby Priya’s Law, employers are prohibited from refusing or cancelling an employee’s paid parental leave if their child is stillborn or dies, as long as the employee would have been entitled to the leave otherwise.
Employers that refuse to allow an employee to take the leave they would otherwise be entitled to, or cancel any part of that leave without express request by the employee, will be liable for civil penalties up to $198,000 for serious breaches.
Baby Priya’s Law, effective 7 November 2025, covers paid parental leave for the birth of the employee’s child, their spouse or de facto partner’s child, or the placement of a child for adoption.
However, exceptions apply if the employee’s contract allows leave cancellation due to stillbirth or death (if the clause existed before 7 November 2025), if the employee isn’t entitled to such leave as per their employment terms, or if they have other leave entitlements for these situations (not including unpaid parental leave or compassionate leave).
Baby Priya’s Law doesn’t require employers to offer paid parental leave if they don’t already provide it; it simply protects existing entitlements. Employers violating these protections may face penalties.
The government says this amendment provides crucial job protections for grieving parents during an unimaginably difficult time, ensuring they don’t lose leave entitlements while coping with the devastating loss, whilst allowing them the time, space and means to grieve without experiencing a fear of job or income loss. The amendment reflects laws already in place in relation to unpaid parental leave.
This amendment reflects a shift towards more open, sensitive, real and compassionate conversations about stillbirths and early deaths. It recognises the traumatic suffering these parents and families experience, and the support system behind them, especially in the workplace.
If you’re unsure how Baby Priya’s Law affects your workplace or parental leave policies, our Employment Law team can provide clear and practical guidance. Contact us to ensure your policies are compliant and up to date.
