Qantas hit with record A$90m fine for illegal layoffs during COVID-19 pandemic
August 18, 2025
Qantas has been fined A$90 million ($59 million) for unlawfully dismissing nearly 2,000 ground staff during the COVID-19 pandemic. The Federal Court of Australia handed down the penalty on Monday, marking the largest industrial relations fine in the nation’s history.
The ruling was based on the airline’s 2020 decision to outsource approximately 1,820 baggage handling, cleaning, and ground operations roles.
In 2021, the court found the move violated the Fair Work Act by taking “adverse action” against employees, effectively preventing them from exercising their workplace rights, including union rights.
The judge who ruled in the case criticised Qantas for showing little remorse and pursuing aggressive legal action afterwards. Rather than acknowledge its wrongdoing, he said, the airline tried to “minimise reputational damage.”
More than half of the Qantas fine will be paid to the TWU
Of the A$90 million penalty, the judge awarded A$50 million paid to the Transport Workers’ Union (TWU). He credited the union for bringing the case forward, though no Australian government agency had pursued an investigation of Qantas for its actions.
“The union has brought to the attention of the court a substantial and significant transgression of a public obligation by a powerful and substantial employer,” the Associated Press quotes Lee as saying.
TWU national secretary Michael Kaine called the outcome a landmark moment for workers’ rights in Australia.
“It is a significant — the most significant — industrial outcome in Australia’s history, and it sends a really clear message to Qantas and to every employer in Australia: Treat your workforce illegally and you will be held accountable,” Kaine said. “Against all the odds, we took on a behemoth that had shown itself to be ruthless, and we won.”
The allocation of the remaining A$40 million will be determined at a later hearing, with discussions underway about directing funds to affected workers.
Qantas accepts the fine and acknowledges employee hardships
Qantas issued a statement accepting the court’s ruling and recognising that its lay-offs caused hardship to its staff.
“We sincerely apologise to each and every one of the 1,820 ground handling employees and to their families who suffered as a result,” says Qantas Group Chief Executive Officer Vanessa Hudson.
“The decision to outsource five years ago, particularly during such an uncertain time, caused genuine hardship for many of our former team and their families. The impact was felt not only by those who lost their jobs, but by our entire workforce,” she added.
“Over the past 18 months, we’ve worked hard to change the way we operate as part of our efforts to rebuild trust with our people and our customers. This remains our highest priority as we work to earn back the trust we lost.”
Judge Lee was sceptical of Qantas’ apology
In his ruling, Lee questioned the sincerity of Qantas’ apology for its illegal conduct, based on the airline’s previous combative stance ahead of its unsuccessful appeal to the High Court in 2021.
“If any further evidence was needed of the unrelenting and aggressive litigation strategy adopted in this case by Qantas, it is provided by this effort directed to denying any compensation whatsoever to those in respect of whom Qantas was publicly professing regret for their misfortune,” Lee said.
“I do think that the people in charge of Qantas now have some genuine regret, but this more likely reflects the damage that this case has done to the company rather than remorse for the damage done to the affected workers.”
The case has been closely watched in Australia’s aviation sector, where the pandemic triggered widespread layoffs and cost-cutting measures. This ruling may set a precedent for future disputes over employer conduct during crisis periods.
