Australia’s national airline, Qantas, has been hit with a historic A$90 million fine for unlawfully terminating the jobs of over 1,800 ground workers during the COVID-19 pandemic. The ruling, issued by the Federal Court, represents the highest penalty ever imposed under the country’s Fair Work Act, signaling a strong message to employers about compliance with labor laws.
Qantas acknowledged the breach and agreed to pay the full amount. The airline admitted that its outsourcing decision caused significant hardship for many former employees. This fine follows a lengthy legal battle with the Transport Workers’ Union, which took the matter to court after mass layoffs in 2020.
Why Did Qantas Face Legal Action?
The airline’s decision to outsource ground handling operations at the height of the pandemic sparked outrage. While Qantas argued that it was a necessary cost-saving measure, the court found the move to be in violation of Australian workplace laws.
Many of the dismissed employees were union members. The court determined that the outsourcing was partly motivated by a desire to prevent workers from engaging in industrial action—a clear breach of legal protections under the Fair Work Act. Here is the link to our article on Discrimination Lawsuit Settlement.
What Was the Outcome of the Court’s Decision?
In its judgment, the Federal Court ordered Qantas to pay A$90 million in penalties, with A$50 million to go directly to the Transport Workers’ Union. The ruling marks a major victory for the union, which described the case as a “David versus Goliath” battle that lasted over five years.
The fine is close to the legal maximum and is intended to act as a deterrent for other corporations considering similar actions. Judge Michael Lee stated that large firms must understand that breaching labor laws comes with serious financial consequences.
How Has Qantas Responded?
Qantas issued a public apology, acknowledging the harm caused to affected employees and their families. The airline’s CEO, Vanessa Hudson, said the 2020 outsourcing decision brought “genuine hardship” and expressed regret over the outcome.
However, the court questioned whether the company’s remorse was sincere. Judge Lee criticized the airline’s aggressive legal strategy and noted that Qantas had tried to avoid paying compensation despite acknowledging fault.
The airline has already agreed to provide an additional A$120 million in compensation to the affected workers, separate from the penalty. Here is the link to our article on Qatar Airways Lawsuit.
What Does This Mean for Australian Employers?
Legal experts believe the Qantas illegal layoffs case could shape future workplace practices. Dan Trindade, an employment law specialist, noted that while the penalty is significant, it may not be enough to deter all large companies. If outsourcing provides substantial cost savings, some firms might still risk it.
There are growing calls for the Australian government to consider increasing penalties under the Fair Work Act to ensure stronger protections for employees in future crises.
What Other Issues Has Qantas Faced?
This is not the only controversy involving the airline. In 2023, Qantas was fined A$100 million for selling tickets on thousands of flights that had already been cancelled. These issues have damaged the airline’s public image and raised questions about corporate governance and consumer trust.
Together, these events have placed Qantas under heightened scrutiny from both regulators and the public.
Final Thoughts
The Qantas illegal layoffs case sets a legal and ethical precedent for corporate accountability in Australia. It emphasizes that no company, regardless of size or industry, is above labor laws. While Qantas has accepted the consequences, the broader impact will be on how other businesses approach workforce decisions during future economic downturns. Ensuring compliance and respecting workers’ rights is not only lawful—but essential.
