Qantas Ordered to Pay A$90 Million for Unlawful Dismissals of Ground Workers During Pandemic

Court Awards Compensation to Union and Workers Following Ruling on Breach of Fair Work Laws

Qantas Airways Ltd. has been ordered to pay a total of A$90 million by the Federal Court of Australia in connection with the mass dismissal of 1,820 ground workers during the height of the COVID-19 pandemic. The ruling, handed down in August 2025, found the airline in breach of national employment laws and confirmed the dismissals were not justified under the Fair Work Act.

The court has directed that A$50 million of the penalty be paid to the Transport Workers’ Union, with the remaining A$40 million going directly to the affected workers. The decision marks a significant legal and financial consequence for Qantas, highlighting the strict scrutiny of employer actions in times of economic crisis.

Penalty Stacked on Top of Previous Compensation Settlement

This latest order follows a major compensation agreement made by Qantas in the previous year, when the company settled a separate claim by entering into a A$120 million compensation deal with impacted employees. The current ruling adds to the financial burden Qantas has already faced in response to the controversial dismissals.

The August 2025 court decision emphasizes that the airline did not meet the necessary legal thresholds for dismissing such a large number of employees. The court found that Qantas had failed to demonstrate that the redundancies were genuinely necessary and had not provided sufficient evidence of a sustainable business model that justified the scale of job cuts.

Union and Labor Advocates Welcome the Ruling

The Transport Workers’ Union has welcomed the ruling as a strong reaffirmation of workers’ rights in the aviation sector. The union had argued throughout the legal process that the dismissals were unjust and disproportionately affected ground staff who had no role in operational flight decisions. The union’s share of the payout is intended to cover legal costs and support for affected members.

For the workers, the A$40 million in direct compensation is expected to offer some financial relief to those who lost their jobs and struggled to secure new employment in the post-pandemic labor market. The ruling serves as a precedent for how courts may assess similar cases involving large-scale job cuts during periods of economic stress.

Legal Implications for Qantas and the Broader Industry

The ruling underscores the importance of due process in employment decisions, particularly in industries facing economic downturns. It also highlights the role of the judiciary in ensuring that major corporations adhere to statutory obligations when restructuring their operations.

While Qantas has yet to issue a public statement on the latest ruling, the outcome reinforces the legal and financial risks associated with mass layoffs in the absence of robust evidence supporting operational necessity. The airline is now expected to comply with the court’s decision, which could have implications for how it manages future employment changes.