An Australian court has imposed a record A$90 million ($59 million) fine on Qantas Airways for illegally sacking over 1,800 ground workers during the COVID-19 pandemic, marking the largest penalty ever issued under Australia’s workplace laws. The ruling by Federal Court Justice Michael Lee on August 18, 2025, concludes a five-year legal battle initiated by the Transport Workers Union (TWU) and serves as a warning to corporations about breaching industrial relations regulations.
Qantas illegally outsourced its ground operations staff across 10 Australian airports in 2020, claiming pandemic-related financial pressures required the move. Justice Lee determined the airline’s primary motivation was to prevent industrial action and undercut wages, particularly targeting unionized employees. The court found this deliberate elimination of 1,820 positions violated Australia’s Fair Work Act protections against unfair dismissal.
Justice Lee criticized Qantas for showing ‘no contrition’ throughout the lengthy legal process, noting the airline’s ‘unrelenting and aggressive’ litigation strategy contradicted its public expressions of remorse. He emphasized the penalty should provide ‘real deterrence’ to other large employers considering similar unlawful cost-cutting measures, especially given the devastating personal impact on workers and their families.
The record penalty includes A$50 million payable directly to the TWU for distribution to affected staff and A$40 million to the Commonwealth. This comes atop A$120 million in compensation Qantas previously agreed to pay after losing multiple appeals. TWU National Secretary Michael Kaine hailed the decision as a ‘moment of justice’ following a ‘David and Goliath battle’ against corporate misconduct.
Qantas CEO Vanessa Hudson issued a public apology, acknowledging the outsourcing decision caused ‘genuine hardship’ during an already uncertain period. The airline accepted the court’s ruling and confirmed it would pay the fine, though its share price still fell 1.2% following the announcement.
This case adds to recent controversies for Australia’s flagship carrier, including a A$100 million penalty last year for selling tickets on canceled ‘ghost flights.’ Legal experts suggest the government may face calls to increase maximum penalties if such fines prove insufficient to deter corporate misconduct during crises.
The landmark ruling establishes significant precedent for worker protections in Australia, demonstrating courts will impose severe consequences for exploitative labor practices even during economic emergencies. It highlights ongoing tensions between corporate cost-cutting measures and employee rights in the post-pandemic aviation industry.