New protections ensure employer-funded parental leave continues for grieving families
The Australian Government has introduced additional protections for employer-funded paid parental leave through the Fair Work Amendment (Baby Priya’s) Act 2025. These changes ensure that employees planning to take, or who are receiving, employer-funded paid parental leave cannot have this leave refused or cancelled if their child is stillborn or dies.
What Has Changed
The Fair Work Act has been changed to prohibit an employer from refusing or cancelling employer-funded paid parental leave for an employee because that employee’s child is stillborn or dies.
This applies if both:
- The employee would have been entitled to the leave under their terms and conditions of employment if their child had not been stillborn or died
- The leave is associated with the birth of an employee’s child or the child of an employee’s spouse or de facto partner, or the placement of a child with the employee for adoption
This protection applies where a child is stillborn or dies on or after 7 November 2025.
The employer can only refuse or cancel the leave because of the stillbirth or death if an exception applies, or if the employee has requested that the leave be cancelled.
Employers who breach this protection could face civil penalties.
Exceptions
This protection does not apply under any of the following exceptions:
Right to Cancel Employer-Funded Paid Parental Leave
The protection does not apply if an employer can refuse or cancel employer-funded paid parental leave because of stillbirth or the death of a child under the employee’s terms and conditions of employment, such as an employment contract or enterprise agreement.
However, this exception does not apply if the terms and conditions are varied by the employer after 7 November 2025 to allow this.
No Entitlement Under Terms and Conditions of Employment
The protection does not apply if an employee is not entitled to employer-funded paid parental leave because of stillbirth or the death of a child under the terms and conditions of their employment.
However, this exception does not apply if their terms and conditions are varied by the employer after 7 November 2025 to allow this.
Other Leave Entitlements Apply
The protection does not apply if an employee is entitled to other forms of leave related to stillbirth or the death of a child under their terms and conditions of employment.
When working out whether this exception applies, the other forms of leave that might be relevant do not include an employee’s entitlement to compassionate leave or unpaid parental leave under the National Employment Standards (NES), or an entitlement under their terms and conditions of employment with the same or substantially the same effect as those NES entitlements.
Additional Important Information
These changes do not require employers to introduce employer-funded paid parental leave if they do not already provide it.
A similar protection already applies to periods of unpaid parental leave under the Fair Work Act.
Navigating Compliance in Australia
If you offer or fund paid parental leave in Australia, you must allow employees to take that leave even if their child is stillborn or dies, unless the employee requests to cancel it. Understanding and implementing these protections is essential for maintaining compliance and supporting your workforce during difficult times.
Whether you’re already partnering with People2.0 or considering workforce solutions in the APAC region, we’re here to help you navigate these and other employment law requirements. Our expertise in Australian employment compliance ensures you stay informed and prepared as regulations evolve.
For complete details about this legislative update, refer to the official Fair Work Australia guidance.
Ready to simplify your workforce compliance in Australia? Contact People2.0 to learn how we can support your operations.
Disclaimer: This update provides general information about legislative changes and does not constitute legal advice. The information is current as of December 2025. For advice specific to your situation, please consult with a qualified legal or tax professional. While People2.0 strives to provide accurate information, we recommend reviewing official government sources and seeking professional guidance for compliance matters.
