From 7 November 2025, new safeguards have been implemented for employer-funded paid parental leave in the event that a child is stillborn or dies. This new legislation is referred to as Baby Priya’s Law, named in memory of a baby whose parents were impacted by cancelled paid parental leave following the child’s death.

What this means is, if an employer offers paid parental leave beyond the federal unpaid parental leave guarantee, and an eligible employee’s child is stillborn or dies, the employer must not refuse or cancel that employer-funded paid parental leave simply because of that event.

Key changes to paid parental leave requirements

Here are the core obligations and conditions that apply:

• The new law prohibits an employer from refusing or cancelling employer-funded paid parental leave because of the stillbirth or death of a child, if the employee would have been entitled to the leave had the child been born alive.
• Paid parental leave must be associated with the birth of the employee’s child or the child of their spouse or de facto partner, or the placement of a child with the employee for adoption.
• The child’s stillbirth or death must occur on or after 7 November 2025 for the protection to apply.

Any breaches to this protection may expose the employer to potential civil penalties under the federal law.

There are exceptions to this new law. The protection does not apply if:

• The employee is not entitled under their employment contract, enterprise agreement, or company policy to employer-funded paid parental leave in the event of the birth/placement of a child.
• The terms and conditions allow (or are varied after 7 November 2025 to allow) cancellation or refusal in those circumstances.
• The employee is covered by another leave entitlement (other than the federal unpaid parental leave or compassionate leave) under their contract or policy specifically for stillbirth or death of child, with the same or substantially the same effect.

It is important to note that the law does not impose an obligation on employers to create an employer-funded paid parental leave scheme if one is not already in place – the change is about protecting existing schemes.

What do employers need to do to remain compliant?

• Review current paid parental leave policies: Do any employment contracts or policies include employer-funded paid parental leave? If yes, do the rules cover events of stillbirth or death of the child? If there are terms which exclude such events, employers may need to update their policies to align with the new law.
• Update documentation: For existing schemes, ensure the wording reflects that leave cannot be refused or cancelled due to stillbirth or death (for kids born or placed on/after 7 November 2025) unless a valid exception applies.
• Communicate with employees: Give clear, accessible information to employees about their rights under the policy, and how these changes affect them (especially in sensitive circumstances).
• Risk management: Experiencing a stillbirth or child-death event is already highly traumatic. From a reputational and legal perspective, it’s worth having compassionate, clear processes and compliance documentation as an inadvertent breach could exacerbate harm to an employee during an already difficult time.

Employers are not required to offer employer-funded paid parental leave if they don’t already; the law doesn’t create a new minimum entitlement in this space. This change also doesn’t replace entitlements under the federal unpaid parental leave scheme (via the National Employment Standards) or other paid leave schemes; it’s specifically about employer-funded paid parental leave.

The law only applies to stillbirth or death of a child when the child’s life event is on or after 7 November 2025.

Why is baby Priya’s bill important?

This law reflects evolving expectations around parental leave and workplace practices. As workplaces mature, there’s increased understanding that life events – including stillbirth or child death – demand clarity in employer responses. From the employer’s side, aligning policies with these protections helps reduce legal risk and fosters a culture of integrity and compassion.

If employers offer employer-funded parental leave pay, they should update their policies and practice to reflect that decisions about that leave cannot hinge on the stillbirth or death of a child (after 7 November 2025) unless a valid exception applies. If employers don’t offer such leave, it’s still good practice to review how their broader parental leave and compassionate-leave arrangements sit, and how they are communicated to employees.

How can Business Chamber Queensland help?

For further information or tailored advice on your parental leave policies, contact Business Chamber Queensland’s Workplace Advisory team. Our team can help you navigate your obligations under the Fair Work Act, review policies, and support your business with practical solutions.