Qantas Ground Staff Illegally Sacked During COVID to Receive $40 Million Federal Court Payout

Incident Overview

More than 1,800 Qantas ground staff illegally sacked during the COVID-19 pandemic will receive a share of a $40 million payout, after the Federal Court ordered the airline’s remaining penalty funds be directed to affected workers. The decision brings an end to one of Australia’s most significant industrial relations battles in recent history.

Details of the Court Ruling
Federal Court Justice Michael Lee ruled on Tuesday that the remaining $40 million of Qantas’s $90 million penalty must be distributed directly to workers who were unlawfully dismissed in 2020.

Earlier this year, the court ordered $50 million of the penalty to be paid to the Transport Workers’ Union (TWU), which brought the case on behalf of affected staff.

Under the latest ruling:

• Each wrongfully dismissed employee will receive an emergency payment of $3,333 before Christmas
• The remaining funds will be distributed on a pro-rata basis, reflecting individual entitlements

Background to the Illegal Sackings
The payout follows a landmark Federal Court finding that Qantas unlawfully outsourced its baggage handlers, cleaners and ground staff during the COVID-19 pandemic.

The court found the decision was made to curb union bargaining power and therefore breached the Fair Work Act.

More than 1,820 workers lost their jobs in 2020, many of whom had spent decades working for the national carrier.

Qantas challenged the ruling in both the Full Federal Court and the High Court, but lost both appeals.

Impact on Workers
The court accepted evidence that the illegal outsourcing caused widespread harm, including:

• severe financial stress
• mental health impacts
• family breakdowns
• long-term career disruption

The TWU described the ruling as long-overdue justice:
“This is a moment of justice for loyal workers who loved their jobs at Qantas. The judgment marks the end of a David-and-Goliath five-year battle and vindicates workers whose fight was mocked from day one.”

Qantas Response
Qantas said it had no further comment beyond its earlier statements accepting the court’s findings.

Qantas Group CEO Vanessa Hudson previously issued 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.”

She acknowledged the outsourcing decision caused genuine hardship and said the airline had spent the past 18 months attempting to rebuild trust with staff and customers.

The airline confirmed it has already paid $120 million into a separate compensation fund for economic loss, pain and suffering, administered independently. Qantas stressed it has no role in distributing the additional $40 million, which will be handled by the TWU.

In Summary

The $40 million distribution marks the final chapter in a defining industrial relations case for Australia’s aviation sector. The Federal Court’s ruling stands as a warning to large employers that workforce restructuring aimed at undermining employee rights can carry severe legal and financial consequences.