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The Federal Government has introduced the Fair Work Amendment (Baby Priya's) Bill 2025, a significant reform aimed at strengthening workplace protections for parents who experience the stillbirth or death of a child.
Under existing laws, employees have been entitled to unpaid parental leave and government-funded parental leave pay in such circumstances. However, there has been no consistent rule requiring employers to maintain any employer-funded paid parental leave entitlement when a child is stillborn or dies, leaving some parents – such as the Bill's namesake, Pryia's parents – vulnerable to the cancellation of leave entitlements at the most distressing time.
This amendment to the Fair Work Act 2009 seeks to address that gap. The Bill introduces a new principle:
Unless expressly agreed otherwise, employer-funded paid parental leave cannot be refused or cancelled because a child is stillborn or dies.
In practice, this means employees can access the same paid parental leave they had planned to take, giving them space to grieve and recover without the additional stress of financial uncertainty.
The Bill also designates this entitlement as a workplace right under the Fair Work Act, meaning employees are protected from adverse action if they exercise it. Civil penalties will apply to employers who breach these provisions.
While the amendment does not create new obligations for employers to provide paid parental leave, it ensures fairness and consistency in circumstances where employers offer such benefits.
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