Australian court slaps Qantas with $58 million fine over staff layoffs

Anabelle Colaco
20 Aug 2025, 08:02 GMT+10

Australia’s flag carrier Qantas Airways has been ordered to pay A$90 million (US$58.6 million) after a court ruled the airline illegally fired 1,800 ground staff at the height of the COVID-19 pandemic and replaced them with contractors
Federal Court Judge Michael Lee said the penalty, among the largest under Australia’s workplace laws, was designed to send a clear signal to big corporations that such actions cannot be written off as just another business expense
The Transport Workers’ Union (TWU), which brought the case on behalf of the sacked employees, will receive A$50 million of the fine

SYDNEY, Australia: Australia's flag carrier Qantas Airways has been ordered to pay A$90 million (US$58.6 million) after a court ruled the airline illegally fired 1,800 ground staff at the height of the COVID-19 pandemic and replaced them with contractors.

Federal Court Judge Michael Lee said the penalty, among the largest under Australia's workplace laws, was designed to send a clear signal to big corporations that such actions cannot be written off as just another business expense.

"My present focus is on achieving real deterrence … to large public companies which might be tempted to ‘get away' with contravening conduct because the rewards may outweigh the downside risk of effective remedial responses," Lee said in his summary judgment.

The Transport Workers' Union (TWU), which brought the case on behalf of the sacked employees, will receive A$50 million of the fine.

The ruling follows a separate A$120 million settlement reached last year between Qantas and the TWU to compensate the affected staff.

The 2020 layoffs became one of the most contentious labor disputes in Australia during the pandemic, when airlines faced an unprecedented collapse in travel demand.

Qantas shares dipped 0.13 percent in early trading following Monday's decision.

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