Qantas Slapped with Record A$90 Million Fine for Illegal Layoffs During Pandemic

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Federal Court Delivers Historic Penalty

Australia’s largest airline, Qantas Airways, has been ordered by the Federal Court to pay a landmark fine of A$90 million (US$59 million) after unlawfully terminating 1,820 ground staff during the COVID-19 pandemic—a move described by Justice Michael Lee as the most serious contravention of Australian labor laws in 120 years.

The issue stems from Qantas’s decision in late 2020 to outsource crucial airport roles—such as baggage handlers and cleaners—to contractors. The court ruled the move constituted “adverse action” under the Fair Work Act, as it prevented employees from exercising their rights to union representation or collective bargaining.

Qantas attempted to appeal the ruling, but the High Court upheld the decision. A discrete A$120 million compensation fund had already been established in December last year for affected workers.

Judge Criticizes Company Response

Justice Lee criticized Qantas’s conduct throughout the litigation, citing a lack of genuine remorse—pointing to a hasty appeal and management’s refusal to testify in court. He highlighted that public apologies may have been motivated more by concern over reputational damage than sincere regret.

Union Victory and Deterrence Message

A significant portion of the fine—A$50 million—has been awarded to the Transport Workers’ Union (TWU), the union that brought the case to court. The remaining A$40 million will be allocated in a future hearing, with union advocates pushing for it to go directly to the affected workers .

TWU National Secretary Michael Kaine hailed the ruling as a “victory for accountability” and sent a clear message to employers that violating labor rights comes with heavy consequences .

Qantas Issues Public Apology and Commits to Reform

Following the ruling, Qantas CEO Vanessa Hudson issued a formal apology. Hudson—a former CFO at the time of the layoffs—acknowledged the hardship caused and emphasized efforts to rebuild trust and overhaul company practices over the past 18 months .

Why This Case Matters

  • Unprecedented Scale: This is the largest industrial relations penalty in Australian history.
  • Corporate Conduct Scrutiny: The case underscores courts’ willingness to drill into public apologies, dismissals, and managerial behavior—not just legal compliance.
  • Worker Rights Reinforced: It serves as a cautionary tale: even in crisis, companies must honor labour protections and union rights.

The Qantas ruling marks a significant juncture in Australia’s labor law enforcement. It demonstrates that breaches—especially under the guise of “commercial necessity”—can result in serious legal and financial repercussions, reinforcing the principle that worker rights cannot be sidelined, even amid extraordinary circumstances.

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