Qantas Slapped with Record-Breaking A$90 Million Fine for Illegal Layoffs…
SYDNEY, August 18, 2025 — Australia’s flagship carrier, Qantas Airways, has been handed a landmark punishment: a staggering A$90 million (approximately US$59 million) penalty for unlawfully dismissing around 1,800 ground staff at the outset of the COVID-19 pandemic .
This ruling marks the largest-ever corporate fine under Australian industrial relations law and is a pointed reminder of the limits of “commercial imperatives” during crisis times .
Federal Court Justice Michael Lee, delivering the verdict, emphasized that the penalty was intended as a “real deterrence” to other employers tempted to skirt labor laws during emergencies . He sharply criticized Qantas’s legal strategy, citing aggressive tactics and questioning the sincerity of the airline’s apology—suggesting its contrition may stem more from reputational fallout than genuine remorse .
Under this settlement, A$50 million has been allocated to the Transport Workers’ Union (TWU)—the union that spearheaded the legal battle, noting that no government agency had pursued the case . The court will later decide how the remaining A$40 million should be directed—likely toward the affected employees .
This punitive measure comes in addition to a previously agreed A$120 million compensation package for former workers, bringing the total cost to Qantas to well over A$200 million .
The TWU’s national secretary, Michael Kaine, hailed the win as a historic victory for accountability in the workplace, sending a clear message to employers nationwide: violating workers’ rights comes with consequences .
Qantas CEO Vanessa Hudson, formerly the airline’s CFO during the layoffs, issued an apology, acknowledging the hardship inflicted on staff and their families. Hudson stressed that the company has been working to rebuild trust and improve operations over the past 18 months .
The case stands as a potent legal milestone and a sobering precedent for how corporations are expected to balance business imperatives with labor rights—even amid global crises.
