The Fair Work Amendment (Baby Priya's) Bill 2025 passed Federal Parliament on 3 November 2025, enshrining protections for employer-funded paid parental leave when a child is stillborn or dies. The legislation introduces a new principle into the Fair Work Act stating that unless employers and employees have expressly agreed otherwise, employer-funded paid parental leave cannot be cancelled due to stillbirth or the death of a child. This brings employer-funded leave into alignment with government-funded paid parental leave and unpaid parental leave protections.

The bill is named after Baby Priya, who died at six weeks old (42 days). Following her daughter's death, Priya's mother informed her employer and had her pre-approved paid parental leave cancelled, forcing her to negotiate an unplanned return to work whilst grieving. In 2022, more than 3,000 families in Australia lost a child to stillbirth or within the first 28 days of birth. On average, six babies are stillborn and two die within 28 days of birth each day in Australia. The legislation addresses situations where parents face compounded distress from workplace uncertainty alongside their grief and trauma. The amendment maintains the ability of employers and employees to negotiate alternative arrangements that specifically address stillbirth or infant death.

Key Points

• Employer-funded paid parental leave cannot be cancelled after stillbirth or infant death unless expressly agreed otherwise

• The bill is named after Baby Priya, who died at six weeks old, after which her mother's parental leave was cancelled

• More than 3,000 families in Australia lost a child to stillbirth or within 28 days of birth in 2022