Australia’s largest airline, Qantas Airways, has been handed a record-breaking fine of A$90 million (about $59 million) by an Australian court for illegally dismissing more than 1,800 ground workers during the onset of the COVID-19 pandemic. The ruling, delivered on August 18 and reaffirmed on August 19, 2025, marks the largest penalty ever imposed by a court for breaches of industrial relations laws in Australia’s history, according to the BBC and other major news outlets.
The penalty follows a turbulent period for Qantas, which, like airlines globally, faced immense operational and financial challenges as the pandemic upended the travel industry. However, the Federal Court found that the company’s decision to terminate the employment of its ground staff—rather than seeking alternatives—crossed a legal and ethical line.
"We sincerely apologise to each and every one of the 1,820 ground handling employees and to their families who suffered as a result," said Vanessa Hudson, Qantas Group chief executive, in a statement following the verdict. The airline has agreed to pay the fine in full, acknowledging that the court’s decision holds it accountable for the "real harm" caused to its staff.
For many Australians, the case has become a flashpoint in the broader discussion about workers’ rights, corporate accountability, and the responsibilities of large employers during times of crisis. The Transport Workers’ Union (TWU), which represented many of the affected staff, welcomed the court’s decision, describing it as a significant victory for workers and a stern warning to other employers.
Federal Court Justice Michael Lee, who presided over the case, made it clear that the size of the fine was intended to be more than symbolic. "The fine should act as a real deterrence to other employers," Justice Lee stated in his judgment, underscoring the need for companies to think twice before making sweeping workforce decisions that contravene established labor protections.
The penalty is not the only financial consequence Qantas faces. Prior to the court’s ruling, the airline had already agreed to pay A$120 million (about $78 million) in compensation to the workers it unlawfully dismissed. Together, these payments represent a substantial outlay for the airline—one that industry watchers say could influence how corporations across Australia approach workforce management in the future.
The origins of the case date back to early 2020, when the COVID-19 pandemic first gripped the world. With international borders slamming shut and domestic travel plummeting, Qantas, like many airlines, found itself scrambling to cut costs and ensure survival. In a move that shocked many, the company terminated the jobs of more than 1,800 ground crew—workers responsible for baggage handling, aircraft cleaning, and other essential services—citing the extraordinary circumstances brought on by the pandemic.
But as the dust settled, questions began to swirl over whether Qantas had acted within the bounds of Australia’s industrial relations laws. The TWU and several affected employees argued that the airline had failed to consult adequately with staff or explore less drastic measures, such as temporary stand-downs or redeployment. The union maintained that Qantas had used the pandemic as a pretext to sideline unionized workers and bring in outsourced labor at lower costs.
The court’s ruling vindicated these concerns, finding that Qantas had indeed violated industrial relations statutes by failing to follow due process. The judgment was unambiguous in its condemnation of the airline’s actions, with Justice Lee emphasizing the need for accountability and the broader message such a case sends to corporate Australia.
"This is the largest penalty ever imposed by a court for violations of industrial relations laws in Australia’s history," the Transport Workers’ Union said in a statement, hailing the decision as a watershed moment. For the union and its members, the verdict represents not just financial redress, but a moral victory after years of legal battles and public campaigning.
Qantas, for its part, has sought to turn the page. In its statement, the airline acknowledged the "real harm" caused and reiterated its commitment to supporting affected staff. The company’s leadership expressed regret over the pain and disruption inflicted on employees and their families, with CEO Vanessa Hudson offering a public apology.
"We sincerely apologise to each and every one of the 1,820 ground handling employees and to their families who suffered as a result," Hudson stated, echoing the sentiment of accountability. The airline’s willingness to accept the fine and compensation payments without further legal challenge has been noted by observers as a sign of contrition and a desire to move forward.
Still, the ramifications of the case are likely to resonate well beyond Qantas. Legal experts and labor advocates say the record fine sends a strong message to employers across the country: even in times of crisis, the rights of workers must be respected, and shortcuts will not go unpunished. Justice Lee’s insistence that the penalty serve as a deterrent underscores the judiciary’s intent to uphold the integrity of Australia’s labor laws.
The case has also reignited debate over the balance between corporate flexibility and worker protections. Some business groups have cautioned that excessively punitive measures could deter investment or stifle innovation, especially during periods of economic uncertainty. However, labor advocates counter that robust enforcement of industrial laws is essential for maintaining trust and fairness in the workplace.
For the more than 1,800 former Qantas ground staff, the decision brings a measure of closure after years of uncertainty. Many lost not only their jobs but also their sense of security and belonging during a time when the world felt especially precarious. The compensation and public acknowledgment of wrongdoing, while not erasing the hardship endured, offer some solace.
As Australia continues to navigate the post-pandemic landscape, the Qantas case stands as a stark reminder of the human cost behind boardroom decisions. It also highlights the enduring importance of legal safeguards for workers, even as industries evolve and adapt to new challenges.
Ultimately, the record fine against Qantas is more than a line in the ledger—it’s a landmark moment in Australia’s ongoing conversation about fairness, responsibility, and the social contract between employers and employees.
