Baby Priya’s Bill amends the Fair Work Act to pro­tect employ­er-fund­ed paid parental leave for par­ents after child loss, still­birth, or adoption.

Baby Priya’s Bill (Bill’) passed par­lia­ment on 3 Novem­ber 2025 after par­ents of 42-day old Priya endured a loss no par­ent should have to suffer. 

Fol­low­ing the trag­ic pass­ing of her daugh­ter, the moth­er of Priya found her­self in a posi­tion where her employ­er can­celled her pre-planned paid parental leave as a result of her daugh­ter’s death.

Pri­or to the Bill being intro­duced, par­ents who expe­ri­enced the still­birth or ear­ly pass­ing of their babies were not afford­ed with legal pro­tec­tions to utilise employ­er-fund­ed paid parental leave as a time to deal with the loss of their child. 

The Fair Work Act 2009 (Cth) (Act) will now be amend­ed to pro­vide employ­ees suf­fer­ing the loss of their child with this pro­tec­tion with­out need­ing to rely on oth­er enti­tle­ments such as annu­al leave or com­pas­sion­ate leave. It should be not­ed that this applies only in cir­cum­stances where the employ­er already has an applic­a­ble scheme in place – this amend­ment does not apply to employ­ers who do not have a paid parental leave scheme or to employ­ees who are not eli­gi­ble for paid parental leave under an employ­er’s paid parental leave scheme. 

Employ­ers in Aus­tralia will not be able to uni­lat­er­al­ly can­cel an employ­ee’s enti­tle­ment of employ­er-fund­ed paid parental leave in cir­cum­stances where the employ­ee’s child is still­born or dies, mak­ing it con­sis­tent with the leg­isla­tive pro­vi­sions con­cern­ing gov­ern­ment-fund­ed paid parental leave. 

An employ­ee’s enti­tle­ment to employ­er-fund­ed paid parental leave will be pre­served in the above­men­tioned cir­cum­stances unless any terms and con­di­tions gov­ern­ing the employ­ment rela­tion­ship (by way of con­tract, poli­cies, indus­tri­al instru­ments, etc.):

  1. express­ly allow the employ­er to refuse or can­cel the paid parental leave in cir­cum­stances of a still­birth or death of an employ­ee’s child; or
  2. express­ly state that the enti­tle­ment is not pro­vid­ed to employ­ees who have expe­ri­enced the still­birth or death of a child; or
  3. pro­vide the employ­ee with anoth­er form of leave that is express­ly avail­able in the event of the still­birth or death of the employ­ee’s child.

The new amend­ments also extend this pro­tec­tion to employ­ees deal­ing with sur­ro­ga­cy and adop­tion arrange­ments and will con­sti­tute a new work­place right for the pur­pose of sec­tion 341 of the Act, deal­ing with gen­er­al pro­tec­tion provisions. 

Fur­ther, employ­ees who have unfor­tu­nate­ly suf­fered from the still­birth or death of a child will only be able to rely on the new pro­vi­sions of the Act after they are imple­ment­ed (pro­vid­ed the death of the child occurs after the imple­men­ta­tion of the new pro­vi­sions), rather than ret­ro­spec­tive­ly, with lim­it­ed exceptions. 

The new pro­vi­sions will fall under the def­i­n­i­tion of a civ­il rem­e­dy pro­vi­sion under the Act, and any employ­er who is found to unlaw­ful­ly breach the new pro­vi­sions may be sub­ject to civ­il rem­e­dy penalties.

If you would like to repub­lish this arti­cle, it is gen­er­al­ly approved, but pri­or to doing so please con­tact the Mar­ket­ing team at marketing@​swaab.​com.​au. This arti­cle is not legal advice and the views and com­ments are of a gen­er­al nature only. This arti­cle is not to be relied upon in sub­sti­tu­tion for detailed legal advice.

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