Employers who offer paid parental leave should review their policies following a recent amendment to the Fair Work Act 2009 (FW Act), which now prevents the cancellation or refusal of employer-funded paid parental leave after a stillbirth or a child’s death.
Our employee relations experts explain how Priya's Law came into effect and what you need to do to stay compliant.
Known as Baby Priya’s Law, the change took effect on November 7, 2025 and aligns paid parental leave arrangements with existing protections for unpaid parental leave under the National Employment Standards (NES).
While the amendment does not require employers to introduce paid parental leave where none exists, it does impose new restrictions on how existing entitlements can be managed.
This article should be used as a guide. For further information, contact the Employee Relations Helpline on 08 9365 7660 or email [email protected].
Background to the change
The amendment was introduced following the death of Baby Priya, who passed away 42 days after birth. After notifying her employer of the loss, Priya’s mother was later informed that her previously approved three months of employer-funded paid parental leave had been revoked. Instead, she was offered four weeks of personal leave.
The case highlighted a gap in the FW Act, where unpaid parental leave was protected following a stillbirth or infant death, but employer-funded paid parental leave was not. Baby Priya’s Law was introduced to address this inconsistency.
What is Baby Priya’s Law?
Baby Priya’s Law amends the FW Act to prohibit employers from refusing or cancelling employer-funded paid parental leave where an employee’s child is stillborn or dies, provided certain conditions are met.
An employee will be protected where:
- they would have been entitled to the paid parental leave under their terms and conditions of employment had the child not been stillborn or died; and
- the leave relates to the birth of the employee’s child (or their spouse or de facto partner’s child), or the placement of an adopted child.
These changes mirror the existing protections for unpaid parental leave under section 77A of the FW Act, which allows employees to access unpaid parental leave where a child is stillborn or dies within 24 months of birth.
The FW Act defines a stillborn child as one who:
- weighs at least 400 grams at delivery or has a gestational period of at least 20 weeks;
- has not breathed since delivery; and
- has not had a heartbeat since delivery.
What the amendment does – and does not – do
While Baby Priya’s Law prevents employers from unilaterally cancelling or refusing paid parental leave, it does not prevent mutual agreement between an employer and employee to reduce or end the leave early, where this is requested by the employee.
Importantly, the amendment does not create a new entitlement to paid parental leave. Employers are not required to introduce employer-funded paid parental leave if it is not already offered.
Key exceptions
Baby Priya’s Law will not apply where:
- the employee does not have an entitlement to employer-funded paid parental leave under their employment terms;
- the terms and conditions of employment allow for the leave to be refused or cancelled in the relevant circumstances (which may apply to some pre-existing contracts); or
- the employee is entitled to access other forms of leave related to the stillbirth or death of a child, excluding compassionate leave and unpaid parental leave under the NES.
What employers should do now
Employers who offer paid parental leave should review their policies, employment contracts and enterprise agreements to ensure they comply with the amended FW Act and reflect the new protections.
To find out more information, or for tailored advice, call the Employee Relations Helpline on 08 9365 7660 or email [email protected].
