Sydney — August 18, 2025 — Qantas Airways has been ordered to pay a record Aus$90 million (US$59 million) in penalties after the Australian Federal Court ruled that the airline illegally laid off more than 1,800 ground staff at the height of the COVID-19 pandemic.
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| $59M Fine on Qantas Airways |
The decision brings a five-year legal battle to a close and stands as one of the most significant rulings in Australian labor law history.
Largest Breach of Employment Law
Federal Court Justice Michael Lee described Qantas’s outsourcing decision in August 2020 as the “largest and most significant breach” of labor laws ever recorded in Australia.
The court rejected Qantas’s argument that the layoffs were purely commercially driven, stating that the move violated workers’ rights. The ruling upheld earlier findings and dismissed Qantas’s appeal.
Union Victory and Worker Compensation
The fine will be partly distributed to the Transport Workers Union (TWU), with the remainder reserved for future payments to affected employees.
This penalty comes on top of Aus$120 million in compensation that Qantas previously agreed to pay its former staff.
The TWU hailed the judgment as a landmark case, emphasizing that it sends a strong message to employers across Australia.
Qantas CEO Issues Apology
Qantas CEO Vanessa Hudson publicly apologized to employees and their families, acknowledging the hardship caused by the outsourcing decision.
“We deeply regret the impact on our people and their families. Our focus now is to rebuild trust and move forward,” Hudson said in a statement.
A Warning to Employers
The case highlights how the pandemic-era decisions of corporations are still being scrutinized years later. Legal experts say the fine reflects the court’s intent to create a “real deterrence” against future breaches of employment law.
For Qantas, already facing reputational challenges, the ruling adds another layer of scrutiny as it works to restore confidence with employees and customers.
FAQs
Q1. Why was Qantas fined $59 million?
The court found that Qantas illegally outsourced and laid off 1,800 ground staff in August 2020, violating Australian labor laws.
Q2. When did the illegal layoffs occur?
The layoffs happened during the COVID-19 pandemic in August 2020, when border closures and lockdowns severely impacted airlines.
Q3. How much has Qantas paid in total?
In addition to the $59 million fine, Qantas has already agreed to pay $120 million in compensation to the affected workers.
Q4. What did the court say about Qantas’s defense?
The court rejected Qantas’s claim that the layoffs were based solely on commercial imperatives, calling it the largest breach of labor law in the nation’s history.
Q5. Who will receive the fine money?
Part of the fine will go to the Transport Workers Union, while the rest will be held for future payments to laid-off staff.
