The Fair Work Amendment (Baby Priya’s) Bill 2025 amends the Fair Work Act 2009 to ensure that employer-funded paid parental leave cannot be cancelled or refused when a child is stillborn or dies, unless an employee expressly agrees otherwise. It applies equally to birth, adoption and surrogacy arrangements, giving parents greater certainty and support during bereavement.
The Bill inserts a new Division 7 into Part 2-9 of the Fair Work Act 2009 by adding section 333X, which prohibits employers from refusing or cancelling employer-funded paid parental leave solely because a child is stillborn or dies. The protection applies unless the terms and conditions of employment expressly allow refusal or cancellation, or the employee requests it. The amendment covers existing and future workplace instruments, contracts and policies, and operates from the day after Royal Assent for any stillbirth or death occurring on or after commencement.
The Bill also updates the guide to the Act (paragraph 5(8)(b)), expands the definition of selected civil remedy provisions (section 12), and classifies contraventions of new section 333X as a selected civil remedy with penalties ranging from 60 to 15,000 penalty units depending on the employer’s size. The Bill includes transitional provisions to ensure that entitlements under contracts and instruments in effect immediately before commencement are protected, and clarifies that standard unpaid parental leave and compassionate leave under the NES do not count as "other leave" for the purpose of limiting new section 333X.
This Bill remedies a clear gap in workplace law by preserving employer-funded paid parental leave when a child is stillborn or dies. Without it, parents face sudden financial hardship and emotional distress at the worst possible time. By ensuring leave cannot be arbitrarily revoked, the Bill maximises overall well-being for grieving families and promotes humane work practices.
It advances equality by removing a source of gender-based disadvantage. Women are more likely to draw on paid parental entitlements and more likely to be penalised if a leave entitlement can be cancelled due to tragic events. This reform aligns with the non-discrimination obligations in CEDAW and fosters equal economic participation.
The amendment also brings Australia’s Fair Work Act into alignment with international labour rights, in particular the right to just and favourable conditions of work under the ICESCR. By giving parents clarity and security, the Bill upholds fundamental human rights and supports a fair, compassionate workplace culture.
Even granting the importance of supporting bereaved parents, this amendment imposes additional legal complexity and compliance costs on employers. Many businesses already offer generous parental leave arrangements and could address stillbirth on a case-by-case basis without a statutory mandate. Forcing all employers to maintain leave regardless of circumstances risks unintended administrative burdens for small and medium enterprises.
The Bill also interferes with the contractual freedom of employers and employees to negotiate bespoke arrangements that reflect each party’s needs and financial capacity. By treating employer-funded leave as sacrosanct, it effectively elevates one form of private benefit into a statutory entitlement, undermining the property rights and risk management prerogatives of businesses, particularly those that do not currently provide paid parental leave.
2025-10-09
House of Representatives
Before House of Representatives
Unspecified
Employment and Workplace Relations
Labour, Discrimination / Human Rights, Social Support / Welfare