Updated Paid Parental Leave Obligations – Baby Priya’s Bill

The Fair Work Amendment (Baby Priya’s) Bill 2025 has now passed through Parliament. The Bill ensures that employer-funded paid parental leave (PPL) cannot be cancelled if a child is stillborn or dies soon after birth, unless the employer and employee have expressly agreed otherwise.

Named in honour of Baby Priya, a premature baby who passed away six weeks after birth, the Bill was introduced after her mother was denied her employer-funded PPL — exposing a gap in existing laws.

What Has Changed

Under current laws, employees are already entitled to unpaid parental leave and government-funded PPL in such tragic circumstances. However, employer-funded PPL was not previously protected. Baby Priya’s Bill introduces a new section in the Fair Work Act 2009 (Cth), aligning employer-funded PPL with government-funded PPL so that it cannot be refused or cancelled when:

• A child is stillborn and the employee would otherwise be entitled to employer-funded PPL; or
• A child dies while the employee is on, or could have accessed, that leave.

Exceptions

An employer may only refuse or cancel employer-funded PPL if an existing employment agreement expressly provides for it, or if specific alternative leave is available for such circumstances (note: unpaid parental or compassionate leave does not count).This does not apply if an employer later changes a contract to include such exclusions.

Next Steps for Employers

• Review employment contracts, policies, and enterprise agreements for compliance.
• Ensure HR and payroll teams understand the new provisions.
• Handle any parental leave requests with care and compassion.

For advice on how these changes may affect your business, please contact the MPAQ Workplace Advisory Team on advice@mpaq.com.au or 07 3273 0800.