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Baby Priya’s Bill: Protecting Paid Parental Leave

Parent holding baby hand

The Employment team discusses this important topic.

On November 3, Parliament passed the Fair Work Amendment (Baby Priya’s) Bill 2025, protecting paid parental leave in tragic situations where the child is stillborn or dies.

Baby Priya

Baby Priya, after which the Amendment is named, sadly passed away at only 42 days, or 6 weeks, old.

When Priya’s mother informed her employer of the news, she was expected to return to work as soon as possible. Not only did she have to deal with the loss of her daughter, but she also had to manage an unplanned and unexpected return to work.

Having navigated this difficult time, Priya’s parents became determined to advocate for all grieving parents out there – to ensure people are not forced to go back to work too early and that they have guaranteed paid parental leave.

Minister Amanda Rishworth commented, saying ‘their strength and determination have driven meaningful change and with Baby Priya’s Bill passing Parliament we can provide certainty for grieving parents and safeguard their financial security’.

The Legal Framework

The Fair Work Amendment (Baby Priya’s) Bill 2025 amends the Fair Work Act 2009 (Cth); adding in Section 333X – ‘Employer-funded parental leave – preserved if child is stillborn or dies’ – under Part 2-9, Division 7 of the Act.

This amendment provides that, unless expressly agreed with the employee to the contrary, the employer must not

  1. Refuse to allow the employee to take parental leave; or
  2. Cancel any part of that leave if a child is stillborn or dies.

Prime Minister Albanese puts it simply – ‘at a time of heartbreak, parents shouldn’t be unexpectedly told it’s time to go back to work by their employer’.

The parent may of course elect to return to their work, but it is not the power of the employer to take that choice from them.

To clarify, this amendment does not require employers to start offering employer-funded parental leave, only that if it has been offered, it cannot be taken away in these circumstances without the agreement of the employee. Furthermore, after commencement of the section, the employer cannot unilaterally change the employment contract to avoid application of this rule, per s333X(4).

Moreover, if the relevant employment contract has already stipulated that, in this case, another type of leave applies, that no leave is granted, or that this leave can be cancelled, s333X will not apply.

International Law Influence

In the Explanatory Memorandum for this Bill, Parliament looked to international human rights and the international instruments Australia recognizes or declares, in accordance with the Human Rights (Parliamentary Scrutiny) Act 2011 (Cth).

For example, reference was had to the following:

  1. The right to the enjoyment of just and favourable conditions of work, Articles 6 and 7 International Covenant on Economic Social and Cultural Rights(ICESCR);
  2. The right of women not to be discriminated against based on gender, Article 11 Convention on the Elimination of All Forms of Discrimination against Women New York, 18 December 1979 (CEDAW); and
  3. The right to protection of health and safety in working conditions, including the safeguarding of the function of reproduction, Article 11(1)(f) CEDAW.

In light of baby Priya, Parliament sought to update our nation’s employment law to better mirror the international standards we subscribe to.

Example – Provided by the Bill’s Explanatory Memorandum

Below is an example of how the new legislation may be practically applied to an everyday situation.

‘Background

Ayu works in a customer service role and is covered by an enterprise agreement. At 14 weeks gestation, Ayu informs her employer that she is pregnant and she intends to take parental leave when her child is born.

Leave entitlements

Under Ayu’s enterprise agreement she is entitled to:

  • 16 weeks of employer-funded paid parental leave, and
  • 3 days of compassionate leave in the event of the death of a family member.

There are no other terms or conditions of Ayu’s employment which address what happens to her employer-funded paid parental leave, or another available leave entitlement, in the event of a stillbirth or the death of the child.

Circumstances

Ayu begins her employer-funded paid parental leave when her daughter, Yanti, is born prematurely at 24 weeks and 6 days. Ayu intends to take 12 months off using a combination of employer-funded paid parental leave, unpaid parental leave, as well as receiving government-funded parental leave pay. Tragically, Yanti passes away 6 weeks after her birth.

Effect of proposed amendments

Ayu notifies her employer of Yanti’s death. Her employer advises that her employer-funded paid parental leave will be cancelled.

Under amendments proposed in this Bill, Ayu’s 16-week employer-funded paid parental leave entitlement would be preserved. Her employer would be prevented from cancelling her leave because of Yanti’s death. Ayu would also be entitled to access 3 days of compassionate leave under her enterprise agreement.

Ayu is still entitled to take the 3 days of compassionate leave available to her in the event of the ‘death of a family member.’ However, the existence of this leave entitlement, although more generous than the National Employment Standards minimum entitlement of 2 days, is not sufficient to allow her employer to cancel her employer-funded paid parental leave. This is because it does not expressly refer to or address stillbirth or death of a child as required by new subsection 333X(5) and there is no other leave available under her terms and conditions of employment which permit her employer to cancel the leave per new subsection 333X(3).’

Conclusion

Responding to the tragedy of Priya’s death, and the advocacy of Priya’s parents, Parliament sought to create a compassionate solution to deeply sad and distressing times. This amendment will protect parental leave where the child is stillborn or dies and protect the emotional and financial wellbeing of the parents.

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*The information provided in this website serves as a general guide and does not constitute legal advice. It is based on our research and experience at the time of publication. Please consult our knowledgeable legal team for any specific inquiries or advice relevant to your circumstances, as the content may not have been updated subsequently.

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