From 7 November 2025, Australian employers face important new obligations under the Fair Work Amendment (Baby Priya’s) Act 2025 – commonly known as Baby Priya’s Law. This landmark legislation strengthens protections for employer-funded paid parental leave in cases of stillbirth or the death of a child.
For businesses, the changes are not just compassionate, they are legal obligations. Failure to comply could result in employment disputes, reputational damage, or legal claims. NB Employment Law is ready to guide businesses in implementing compliant policies that protect both staff and the organisation.
Understanding Baby Priya’s Law
Previously, employees were entitled to unpaid parental leave under the Fair Work Act 2009 and government-funded parental leave pay under the Paid Parental Leave Act 2010 (Cth) if a child was stillborn or died. However, employer-funded paid parental leave, negotiated directly with employers, lacked clear legal protection.
Baby Priya’s Law now ensures that employees who experience a stillbirth or the death of a child on or after 7 November 2025 will retain entitlement to employer-funded paid parental leave, unless an express exception applies.
Exceptions Include:
1. The employment agreement expressly allows refusal or cancellation of leave in these circumstances.
2. The employee is specifically not entitled to the leave under their employment agreement.
3. The employee is entitled to another form of leave in their employment agreement that addresses stillbirth or child death (excluding unpaid parental leave or compassionate leave).
Employers cannot deny or cancel leave simply because of a stillbirth or child death unless one of these exceptions applies or the employee requests cancellation.
Why Employers Must Act
Baby Priya’s Law introduces new compliance requirements. Businesses that fail to update policies or employment agreements could face:
· Employment disputes or claims over parental leave entitlements
· Reputational risks in managing sensitive employee matters
· Legal penalties for non-compliance under the Fair Work Act
Proactive action is essential. Updating HR policies and employment agreements ensures legal compliance, mitigates risk, and maintains staff trust.
How NB Employment Law Can Help
NB Employment Law specialises in providing practical, compliant solutions for Australian businesses. We assist employers to:
· Review and update parental leave policies in line with Baby Priya’s Law
· Draft employment agreements that clearly define leave entitlements and exceptions
· Implement HR processes to manage sensitive leave requests consistently and legally
· Minimise risk of disputes and protect your business reputation
By partnering with NB Employment Law, employers can ensure full compliance with the Fair Work Act while demonstrating care and support for employees during difficult times.
Key Takeaway
Baby Priya’s Law is a critical legislative change that protects employees while creating new obligations for employers. Businesses that proactively review and update policies not only reduce legal risk but also strengthen their workplace culture.
NB Employment Law is here to help businesses navigate these changes, ensuring your company is protected, compliant, and prepared.