In a landmark decision that has sent shockwaves through Australia’s business community, a federal court has handed down the largest penalty in the nation’s labor law history to Qantas Airways. The ruling, delivered on August 18, 2025, orders the airline to pay an unprecedented 90 million Australian dollars (approximately US$58.64 million) for the illegal layoff of 1,820 ground staff during the height of the COVID-19 pandemic. The verdict is not only a financial blow to the country’s flagship carrier but also a resounding affirmation of workers’ rights in the face of corporate overreach.
According to Reuters, the fine represents about 75% of the maximum penalty allowed under Australian law—a clear message from the bench that such breaches cannot simply be brushed off as a cost of doing business. Presiding Judge Michael Lee was unequivocal in his criticism of Qantas, particularly regarding the sincerity of the company’s remorse. “I accept that Qantas regrets its actions, but I am not convinced that this remorse isn’t, at least in significant part, the wrong kind of apology,” he stated in his ruling, as reported by multiple outlets.
The saga dates back to 2020, when Qantas, grappling with the unprecedented challenges posed by the global health crisis, made the decision to lay off 1,820 ground staff and outsource their roles to contractors. The company justified the move as a necessary commercial step amid plummeting air travel demand. However, the action quickly drew the ire of the Transport Workers Union (TWU) and labor advocates nationwide, who argued the layoffs constituted an unlawful attack on employees’ rights.
The legal battle began in earnest in 2021, when the Federal Court ruled that Qantas’s actions amounted to “adverse action” under the Fair Work Act, effectively preventing workers from unionizing and exercising other fundamental workplace rights. The ruling, detailed in a 431-paragraph document, left little doubt as to the court’s view of the airline’s conduct. Qantas, undeterred, immediately announced plans to appeal the decision to the High Court. That appeal, however, failed in September 2023, solidifying the legal foundation for this week’s historic penalty.
Judge Lee’s ruling went beyond a simple assessment of legalities. He took aim at Qantas’s internal culture and its approach to both litigation and public relations. Notably, he criticized the airline for keeping its current CEO, Vanessa Hudson—who was the Chief Financial Officer at the time of the layoffs—off the witness stand. “It’s one thing for the ‘Qantas press room’ to issue statements from a CEO saying they regret what happened; it’s another for those claims of contrition and cultural change to be tested in court,” Lee observed pointedly.
Of the 90 million AUD fine, a significant portion—50 million AUD—will be paid directly to the Transport Workers Union, which led the lawsuit on behalf of the ground staff. TWU national secretary Michael Kaine did not mince words in celebrating the outcome: “Against all odds, we stood up to a ruthless giant, and we won.” Josh Bornstein, a principal at Maurice Blackburn Lawyers, which represented the union, echoed this sentiment, saying, “This record-breaking penalty reflects the monumental scale of Qantas’s wrongdoing.”
The financial consequences for Qantas extend beyond the penalty itself. In December 2024, the airline reached a settlement with the affected workers, agreeing to pay 120 million AUD into a compensation fund. This settlement, combined with the new court-ordered fine, underscores the magnitude of the airline’s miscalculation during the pandemic and the enduring impact on its workforce.
For Qantas, the fallout has not been limited to the courtroom. On the day the verdict was announced, the airline’s shares fell 0.4%, dipping to 11.58 AUD at the market’s opening. While some analysts have characterized the drop as modest relative to the scale of the penalty, the reputational damage may prove far more costly in the long run. As Judge Lee noted, Qantas’s expressions of regret appeared to be motivated as much by concern for its public image as by genuine contrition for the harm caused.
In the wake of the ruling, Qantas moved swiftly to pledge compliance. “We sincerely apologize to each of the 1,820 ground staff and their families,” CEO Vanessa Hudson said in an official statement. The airline reiterated its intention to pay the fine in full and emphasized its commitment to rebuilding trust with both employees and the public. “We accept the court’s judgment and acknowledge that our actions in 2020 caused real harm to our people,” the company stated.
The case has drawn widespread attention not just for its record-breaking financial penalty, but also for the broader implications it carries for corporate Australia. By imposing a fine that constitutes a substantial portion of the statutory maximum, the court has set a powerful precedent: decisions that violate workers’ fundamental rights will not go unpunished, and attempts to spin or minimize such conduct in the court of public opinion will be met with skepticism.
For labor advocates and unions, the verdict is a watershed moment. The TWU’s victory, achieved “against all odds,” as Kaine put it, signals a renewed vigor in the movement to defend workers’ rights amid ongoing economic uncertainty. The case also highlights the crucial role of legal advocacy in holding powerful corporations to account—a principle that resonates not just in Australia, but in labor markets around the world.
Meanwhile, Qantas faces the daunting task of restoring its reputation and rebuilding the trust of its workforce. The airline’s leadership, under the scrutiny of both the courts and the public, must now demonstrate that its promises of cultural change are more than just words. As Judge Lee’s comments made clear, the era of empty apologies and corporate spin may be drawing to a close in Australian labor relations.
This historic ruling leaves no doubt: the stakes for companies that disregard the rights and dignity of their employees are higher than ever. For Qantas, the lesson comes at a steep price—one that will be remembered for years to come.
