Layoffs may be typical for 2025, but during the pandemic, many cuts were made without the necessary preparations. Now, Qantas has been fined for illegal layoffs conducted during the COVID-19 pandemic, marking a win for the Transport Workers Union that took the organization to court. Qantas has been fined AU$90 million, approximately $59 million US dollars, for its decision to fire 1,800 ground staff at the onset of the pandemic.
While the organization tried to get away with outsourcing the jobs following the layoffs, Australian Federal Court Justice Michael Lee deemed the decision the “largest and most significant contravention” of labor laws in Australia.
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Qantas Fined for Illegal Layoffs Conducted in 2020
The COVID-19 pandemic was a difficult time for organizations and employees alike. While businesses tried to remain afloat despite the sharp drop in demand and revenue, employees struggled to hold on to their jobs. Qantas was one among the many businesses that turned to layoffs as a way to cut costs, and it abruptly fired 1,800 employees as a matter of course. The company then outsourced the work to 1,820 baggage handlers and cleaners across Australian airports.
The Transport Workers Union soon kick-started what was to be a five-year-long battle to seek reparations and hold the Sydney-based airline accountable for its decision during the pandemic.
How Much has Qantas Been Fined for the “Illegal” Pandemic Layoffs?
Qantas has been fined AU$90 million for circumventing regulations, which is in addition to the AU$120 million ($78 million) compensation it agreed to pay its former workers last December. During the proceedings, seven High Court judges had unanimously rejected Qantas’ appeal that the decision to outsource the work was legal. The Transport Workers Union that led the battle against Qantas had argued that the airline should be hit with the largest fine possible to set a precedent for such actions—AU$121,212,000 or roughly 78,969,735 US dollars.
Australian Federal Court Justice Michael Lee, who presided over the ruling, stated that the minimum deterrent fine for such actions should be set at AU$90 million ($59 million). Lee also indicated that Qantas had hoped to save AU$125 million ($81 million) a year following its decision to outsource jobs, making the fine amount all the more relevant to the case.
How Will the Qantas Layoff Fines Be Disbursed?
Reports suggest that of the AU$90 million fine levied against Qantas, AU$50 million ($33 million) will be paid directly to the union. Justice Lee acknowledged the union’s efforts to have the organization held accountable for its “unlawful conduct” in firing the workers and replacing them all at once. “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,” Lee added in the statement.
As for the remaining AU$40 million (approximately $26 million), a hearing at a later date will determine the next step for what is to be done with the fine. Additionally, Qantas chief executive Vanessa Hudson provided a statement for the workers who were affected by the layoffs after the decision regarding the Qantas fines was revealed. “We sincerely apologize to each and every one of the 1,820 ground handling employees and to their families who suffered as a result.”
“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,” she continued. She also explained that in the last 18 months, the company has attempted to change its operating systems and rebuild trust with employees and customers. Time will tell just how successful the company is at repairing its relationship with its community.
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