The Fair Work Amendment (Baby Priya's) Act 2025 has been in effect since 7 November 2025, introducing new protections for employer-funded paid parental leave in cases of stillbirth or the death of a child. For employers that provide this form of leave, the law prohibits cancelling or refusing the entitlement in these circumstances — and the obligation applies regardless of whether the situation has arisen before.

This article covers what the law requires, the limited exceptions that apply, and the practical steps HR teams should have in place.

Key Requirements of Baby Priya’s Law for HR & Employers

The Fair Work Amendment (Baby Priya's) Act 2025, which took effect on 7 November 2025, amends the Fair Work Act 2009 to prohibit employers from refusing or cancelling employer-funded paid parental leave when an employee's child is stillborn or dies.

To understand where this protection sits, it helps to distinguish between the three categories of parental leave available to Australian employees.

The protection and when it applies

Where a stillbirth or death of a child occurs, an employer is prohibited from refusing or cancelling employer-funded paid parental leave, provided both of the following conditions are met:

1. The employee would have been entitled to the leave under their terms and conditions of employment had the stillbirth or death not occurred.

2. The leave is associated with the birth of a child of the employee, the employee's spouse or de facto partner, or the placement of a child with the employee for adoption.

Exceptions — when the protection does not apply

The protection introduced by Baby Priya's Law applies in most circumstances where an employee holds an employer-funded paid parental leave entitlement. The Fair Work Act sets out the following exceptions.

The employee requests cancellation

The prohibition applies to unilateral action by the employer. Where an employee requests that their employer-funded paid parental leave be cancelled, the protection does not apply. The entitlement remains available to the employee, but the decision to cancel rests with the employee alone.

Pre-existing terms and conditions — three situations

The protection also does not apply where the employee's terms and conditions of employment — such as an employment contract or enterprise agreement — already address the position in one of the following ways:

1. The terms expressly permit the employer to refuse or cancel employer-funded paid parental leave because of stillbirth or the death of a child.

2. The terms expressly provide that the employee is not entitled to employer-funded paid parental leave in circumstances of stillbirth or the death of a child.

3. The terms provide the employee with a separate form of paid leave that is expressly available in the event of stillbirth or the death of a child.

A critical caveat applies to these exemptions (under Section 333X): an employer cannot rely on these exceptions if they have unilaterally varied the employment terms after 7 November 2025 to engineer such an exclusion. Any such variation made by an employer after that date will not engage the exception.

For situation 3, a further qualification applies: an employee's entitlement to compassionate leave or unpaid parental leave under the National Employment Standards — or any entitlement that has the same or substantially the same effect as those NES entitlements — does not count as the required alternative leave. The alternative leave must be a distinct entitlement that explicitly addresses stillbirth or the death of a child.

Employers are not prevented from reaching new agreements with employees through genuine bargaining. However, any such arrangement must reflect the express agreement of the employee and cannot be imposed unilaterally.

What HR teams should have in place

Baby Priya's Law applies to all employers that provide employer-funded paid parental leave. The following steps provide a practical basis for ensuring compliance and preparing for situations where the protection may need to be applied.

1. Review employer-funded paid parental leave policies

Existing paid parental leave policies should be reviewed to confirm they are consistent with Baby Priya's Law. Any provision that allows an employer to cancel or refuse employer-funded paid parental leave in the event of stillbirth or the death of a child should be identified. Where such provisions exist, legal advice should be sought on whether they were in place before 7 November 2025 and whether they engage the exception under the Act, before any changes are made.

2. Review employment contracts and enterprise agreements

Paid parental leave terms in employment contracts and enterprise agreements should be reviewed alongside the policy review. Provisions that conflict with the protection — or that an employer may wish to vary — require careful consideration, given that unilateral variation by an employer after 7 November 2025 cannot be used to expand or create an exception to the protection.

3. Brief managers on the protection and the response process

Managers who may receive a disclosure of stillbirth or the death of a child should understand the protection that applies and the steps that follow. This includes knowing that employer-funded paid parental leave continues unless the employee requests otherwise, and understanding how to direct the employee to HR for support and leave administration.

4. Document the internal response process

A documented process for handling paid parental leave in the event of stillbirth or the death of a child reduces the risk of errors at a time when both the employee and the organisation are under significant strain. At a minimum, the process should cover who manages the leave administration, what documentation is required, how payroll is notified, and how the employee is kept informed of their entitlements.

5. Understand the penalty exposure

Employers who breach the protection under Baby Priya's Law may be subject to civil penalties under the Fair Work Act. For information on civil penalty amounts, refer to the Fair Work Ombudsman.

Baby Priya's Law establishes a clear baseline: where an employee holds an entitlement to employer-funded paid parental leave, that entitlement cannot be cancelled or refused because their child is stillborn or dies. For HR teams, the immediate priorities are confirming that existing policies and contracts are consistent with the law, briefing managers on the protection and the response process, and having a documented internal process in place before it is needed.

For guidance on specific situations — including the application of exceptions or the review of existing contractual terms — consult a workplace relations adviser.

Official sources:

• Fair Work Ombudsman — Baby Priya's Law

• Fair Work Ombudsman — Parental leave

• Fair Work Ombudsman — Litigation and civil penalties

Last updated: July 2026