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Recent changes to federal workplace law have introduced protections with respect to parental leave for Australian families experiencing the tragic loss of a baby. The Fair Work Amendment (Baby Priya’s) Bill 2025 has now passed Parliament amending the Fair Work Act 2009 (Cth) to safeguard parents’ employer-funded paid parental leave in cases of stillbirth or the death of a child shortly after birth.

Background

For many Australian families, the death of a baby is a devastating and deeply personal event. Yet, until now, federal workplace protections did not explicitly safeguard paid parental leave in these circumstances. In some workplaces, employees who experienced the loss of a child were asked to return to work almost immediately, take annual leave instead of parental leave, or had pre-approved paid parental leave cancelled altogether (on the basis that they do not have a child to look after, given the tragic passing of their child).

The absence of clear legal guidance has created uncertainty for both parents and employers. Families navigating grief were often forced to confront the additional stress of financial and employment insecurity. Employers, on the other hand, lacked explicit direction on how to handle these sensitive situations, potentially exposing themselves to disputes or inconsistent practices.

The catalyst for change

The reform was driven by advocacy from families directly affected by infant loss. One notable case involved a mother whose six-week-old daughter, Priya, tragically died. Despite notifying her employer, where she had worked for over a decade, and receiving condolences, she was informed that her pre-approved three months of paid parental leave had been cancelled.

The public response highlighted a broader demand for clarity in parental leave policies. This advocacy played a pivotal role in prompting the federal government to act.

Key provisions of the new law

The amendment addresses the previous gaps in workplace protections by clarifying that employees who experience the death of a baby are entitled to retain their paid parental leave until it is fully exhausted. The protection applies irrespective of whether the child was stillborn, passed away shortly after birth, or survived beyond the early weeks.

For employees, this means:

• Financial security – paid parental leave is preserved, providing income during a period of bereavement.
• Emotional support – employees can focus on grieving and recovery without the immediate pressure to return to work.
• Certainty of entitlement – there is no ambiguity regarding leave entitlements following infant loss.

For employers, the Bill proposes:

• Clarity as HR departments and management are given explicit guidance, reducing uncertainty in decision-making.
• Consistency in workplace policy as employers would have a clearer framework for applying leave entitlements fairly and uniformly.
• Potential benefits for staff retention and workplace culture, as recognising and supporting employees through bereavement could help organisations foster a more compassionate and supportive work environment.

The law does not restrict employers and employees from negotiating their own paid parental leave arrangements beyond the proposed minimum entitlement. Employers will, remain free to offer enhanced leave or alternative arrangements, provided the statutory minimum is maintained.

Practical implications

For employees – the new protections guarantee that parents experiencing the loss of a baby can rely on their entitlements without fear of losing pre-approved leave. Families can plan their time away from work, knowing that legal protections support both financial and emotional recovery.

For employers – the reform establishes a clear expectation for the handling of parental leave following infant loss. Employers should review policies and prepare for the eventual implementation of the legislation, ensuring that HR procedures are consistent, fair, and sensitive. Clear guidance helps reduce potential disputes and reinforces a culture of empathy in the workplace.

Additionally, organisations that prioritise employee wellbeing and provide transparent leave policies are likely to benefit from improved staff morale, loyalty, and reputation in the labour market.

Employees should familiarise themselves with their entitlements under the Fair Work Act 2009 (Cth). Where uncertainty or disputes arise, obtaining legal advice may assist in understanding entitlements and obligations.

This article was published on 14 November by Carroll & O’Dea Lawyers and is based on the relevant state of the law (legislation, regulations and case law) at that date for the jurisdiction in which it is published. Please note this article does not constitute legal advice. If you ever need legal advice or want to discuss a legal problem, please contact us to see if we can help. You can reach us on 1800 059 278 or via the Contact us page on our website.