New Parental Leave Safeguards Introduced in the Baby Priya’s Act
The Fair Work Amendment (Baby Priya’s) Act 2025 marks a deeply human shift in Australia’s workplace laws – one born from heartbreak, compassion and a mother’s unimaginable loss
The reform traces back to the story of Baby Priya, who was born prematurely and passed away just 42 days after. In the midst of grief, her mother faced another blow: the employer-funded paid parental leave that had had been granted was suddenly withdrawn after she informed her workplace of her daughter’s passing.
What began as an online petition quickly grew into a national movement – one strong enough to carry the issue all the way to the federal parliament. This week, that public push culminated in the passing of Baby Priya’s Bill, ensuring employers can no longer revoke paid parental leave when an employee suffers a stillbirth or the loss of an infant.
With the Bill now passed, the focus turns to what the new law does. Below is a clear overview of the key protections and changes introduced by the amendment.
Overview of the New Protections
The Baby Priya’s Act prohibits employers from unilaterally refusing or cancelling employer-funded paid parental leave when an employee experiences a stillbirth or the death of a child.
Its central aim is to ensure grieving parents do not have the added stress of losing their leave. Importantly, employers who breach these protections may face civil penalties.
These protections apply where a child is stillborn or dies on or after 7 November 2025.
When Employers Cannot Refuse or Cancel Paid Parental Leave
In practice, if an employee is otherwise entitled to employer-funded paid parental leave, the employer must allow the leave to proceed unless one of the limited statutory exceptions applies.
Exceptions to the Baby Priya Act
There are some exceptions to the new legislation. The protection does not apply if the employee asks to cancel their leave, or where a contract, enterprise agreement or policy that was already in place before 7 November 2025 allows leave to be refused, cancelled or not provided in these circumstances. The protection also does not apply if the employee already has another specific form of paid leave that covers stillbirth or infant loss (not including standard compassionate leave or unpaid parental leave, or similar entitlements).
Steps to Take Following the Baby Priya’s Act
Following the Baby Priya’s Act, employers should promptly review contracts, enterprise agreements and parental leave policies to identify any clauses about cancelling employer-funded paid parental leave and ensure they comply with the new protections. Terms must not be amended after 7 November 2025 to justify cancelling leave in cases of stillbirth or child death, and employers must not refuse or cancel such leave unless a clear statutory exception applies, as breaches may attract civil penalties. Employers should review policies to ensure they do not inadvertently breach this protection, and legal advice is advisable where complex or unusual arrangements exist.
If you are an employee or employer with employment law queries, please contact Voice Lawyers by booking through our website, or if you would like a second opinion, come and speak with us or call 02 9261 1954.