The Albanese led government has amended the Fair Work Act 2009 (Cth) to introduce protections for employees receiving employer-funded paid parental leave in circumstances where a child is stillborn or dies after birth. These amendments, known as Baby Priya’s Law, affect employers that provide paid parental leave benefits and the employees who access them. MST Lawyers’ Employment Law team assists employers in understanding and applying these legislative requirements within their workplace arrangements.
Key takeaways
- Baby Priya’s Law introduces statutory protections for employer-funded paid parental leave following stillbirth or infant death.
- The Fair Work Amendment (Baby Priya’s) Act 2025 (Cth) inserts section 333X into the Fair Work Act 2009 (Cth).
- The protections apply only to employer-funded paid parental leave, not unpaid parental leave.
- The protections apply to stillbirth or child death occurring on or after 7 November 2025.
- MST Lawyers provides advice to employers managing parental leave obligations in sensitive and complex circumstances.
Background to Baby Priya’s Law
Baby Priya’s Law is named in response to the death of Baby Priya, who passed away at 42 days old. After notifying her employer of her child’s death, Priya’s mother was informed that her three months of pre-approved employer-funded paid parental leave had been cancelled. The amendments insert provisions into the Fair Work Act 2009 (Cth) that address circumstances involving stillbirth or the death of an infant.
What the Fair Work Amendment (Baby Priya’s) Act 2025 (Cth) introduces
The Fair Work Amendment (Baby Priya’s) Act 2025 (Cth) commenced on 7 November 2025 and inserts section 333X into the Fair Work Act 2009 (Cth).
Section 333X provides:
- Protections relating to employer-funded paid parental leave in circumstances involving stillbirth or the death of a child;
- That the protections apply to stillbirth or child death occurring on or after 7 November 2025; and
- That the protections do not prevent an employee from requesting cancellation of their own employer-funded paid parental leave.
The Minister for Employment and Workplace Relations has publicly commented on the reforms, including statements acknowledging the impact of these circumstances on affected families.
Legal exceptions
Section 333X does not apply in certain circumstances. These include where:
- Existing employment terms expressly allow cancellation
The employee’s employment contract, enterprise agreement or other terms expressly permit an employer to refuse or cancel employer-funded paid parental leave because of stillbirth or the death of a child. - Existing terms expressly exclude entitlement
The employee’s terms of employment expressly state that they are not entitled to employer-funded paid parental leave in the event of stillbirth or the death of their child. - Other applicable leave entitlements exist
The employee is entitled to another form of leave that expressly deals with stillbirth or child death (excluding unpaid parental leave and compassionate leave).
- Existing employment terms expressly allow cancellation
The amendments further provide that employers unilaterally change the terms of employment after 7 November 2025 for the purpose of relying on these exceptions.
What this means for employers
For employers who do not offer employer-funded paid parental leave, the amendments do not create an obligation to introduce such leave.
Employers who do offer employer-funded paid parental leave should review:
- Employment contracts;
- Enterprise agreements; and any applicable industrial instruments
- Parental leave policies
to ensure they understand how section 333X interacts with any existing provisions.
Any examples or scenarios should be treated as general information only.
How MST Lawyers can assist
The Employment Law team at MST Lawyers provides advice regarding:
- Parental leave entitlements;
- Reviewing and updating contracts and policies; and
- Compliance with the Fair Work Act 2009 (Cth).
We assist employers and employees in understanding parental leave provisions in situations that are legally complex and emotionally sensitive.
