Baby Priya Amendment: Paid parental leave after infant loss
Following the introduction of the Fair Work Amendment (Baby Priya’s) Act 2025, employees who endure stillbirth or the loss of a newborn are now granted additional protections when accessing employer‑funded paid parental leave.
This amendment recognises the profound impact of such loss and aims to provide clear and compassionate support for families who have lost a baby.
If an employee is entitled to paid parental leave due to the birth or adoption of a child, employers can no longer:
- refuse to allow that employee to take parental leave; or
- cancel any part of that employee’s pre-approved employer-funded paid parental leave,
because of the stillbirth or death of that child, unless the employee agrees.
Background
Under the Fair Work Act 2009, an employee who is entitled to unpaid parental leave or government-funded parental leave continue to have access to that leave even in cases of stillbirth or death of the child.
Historically, employer-funded parental leave did not contain the same protection, and employers could refuse an employee’s request for leave or cancel pre-approved leave following such a loss.
The gap in these protections prompted the ‘Baby Priya’ amendments. In Baby Priya’s case, when she died at six weeks old, her mother’s employer cancelled her pre-approved parental leave and requested she return to work immediately – adding further distress to an already devastating situation.
What does this mean for employers?
The Fair Work Amendment (Baby Priya’s) Act 2025 does not require employers to provide paid parental leave. Rather, it ensures that where an employer does offer paid parental leave, it cannot be cancelled or refused solely because an employee’s child is stillborn or dies shortly after birth.
Employers who breach these new provisions may be exposed to civil penalties (fines) and adverse action claims.
Are there any exceptions?
There are limited circumstances in which an employer may still refuse or cancel employer-funded parental leave after a stillbirth or death. These include:
- Where an employee themself requests that their leave be cancelled.
- If the terms and conditions of employment (such as an employment contract or enterprise agreement) came into effect before 7 November 2025 and those terms:
- expressly state than an employee is not entitled to employer-funded paid parental leave because of stillbirth or the death of a child; or
- expressly permit an employer to refuse or cancel employer-funded paid parental leave in the event of stillbirth or the death of a child; or
- provide an entitlement to other forms of leave expressly related to stillbirth or the death of a child.
Reminder for employers
Employers should ensure that they remain up to date with their obligations under the Fair Work Act 2009 and review their policies relating to employer-funded parental leave payments to understand how the new amendments may affect their employees. Where uncertainty arises, obtaining legal advice may assist in understanding the entitlements of employees.
