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Monday, January 19, 2026

Legislation protects workers on parental leave following infant death - HRD America

Employer-funded paid parental leave can’t be cancelled without other specific leave for such circumstances

Australian workplaces are undergoing significant legal and cultural transformation. Recent reforms and decisions are redefining how employers support their people.

First, the Fair Work Amendment (Baby Priya’s) Bill 2025 ensures that employer-funded paid parental leave cannot be cancelled or refused if an employee’s child dies or is stillborn, including in surrogacy and adoption arrangements. This change brings greater certainty and compassion to families, requiring employers to honour existing entitlements in the most tragic circumstances.

This development, along with others, signals a new era of fairness, openness and support in Australian workplaces. We explore what these changes mean for employers and employees and offer practical guidance for navigating the evolving legal landscape.

Protecting paid parental leave rights in tragic circumstances

Employers will be prevented from cancelling or refusing employer-funded paid parental leave if an employee’s child dies or is stillborn, including in surrogacy and adoption arrangements. The protection arises from proposed amendments made to the Fair Work Act 2009 (Cth) by the Fair Work Amendment (Baby Priya’s) Bill 2025 (Cth). The Bill inserts a new section 333X to the Fair Work Act. The Bill was passed by Parliament on 3 November 2025, after the Senate endorsed it without amendments.

The Bill seeks to ensure that...



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