Sydney: Qantas Airways has been ordered to pay a record A$90 million fine after the Federal Court of Australia ruled that the airline illegally dismissed 1,820 ground staff during the COVID-19 pandemic. The penalty, handed down on August 18, 2025, is the largest industrial relations fine in Australian history and comes in addition to the A$120 million compensation package the airline agreed to pay affected employees last year.

The case dates back to late 2020 when Qantas outsourced ground handling roles in what the court later determined was a breach of the Fair Work Act. In 2021, the Federal Court ruled against the airline, a decision upheld by higher courts including the High Court. Despite prolonged legal battles, the court found Qantas continued to deny responsibility and pursued aggressive litigation tactics instead of acknowledging wrongdoing.

Justice Michael Lee, who delivered the judgment, criticized Qantas for treating the fine as a “cost of doing business,” showing little genuine remorse, and failing to hold senior executives accountable. He directed that A$50 million of the penalty be awarded to the Transport Workers Union (TWU), which played a key role in exposing the unlawful sackings. The allocation of the remaining A$40 million will be decided later.

Qantas Chief Executive Officer Vanessa Hudson, who was chief financial officer at the time of the layoffs, apologized following the ruling. She acknowledged the harm caused and said the airline has been implementing cultural and organizational reforms over the past 18 months to rebuild trust with both staff and customers.

The TWU hailed the outcome as a landmark victory for workers. National Secretary Michael Kaine said the case underscored the importance of unions in holding corporations accountable, noting the legal battle took more than five years and required sustained effort despite limited initial government support.

The combined financial burden of fines and compensation now exceeds A$210 million for Qantas, sending a strong message to corporate Australia about the consequences of violating labor laws. The case is expected to serve as a precedent in ensuring that large companies cannot bypass worker rights during times of crisis.