Qantas faces A$90m penalty over pandemic layoffs

Australia's largest airline was penalized for firing about 1,700 ground staff during the Covid-19 crisis.

Qantas fined 90 million for illegal pandemic layoffs

A Federal Court in Australia has ordered Qantas to pay A$90m for illegally dismissing around 1,700 ground workers during the Covid-19 pandemic. The ruling, delivered by Federal Court Justice Michael Lee, states the layoffs were unlawful and occurred as aviation demand collapsed. The Transport Workers' Union welcomed the decision, noting it as a strong deterrent against unlawful employer conduct. Qantas has not issued a public comment at the time of publication.

The case highlights how labor laws apply during emergencies and the duties on employers to follow due process before cutting staff. It also raises questions about how companies balance crisis management with worker protections and the potential ripple effects for other firms considering layoffs in downturns.

The decision fits a broader pattern of courts asserting a clear standard for crisis layoffs. It signals that penalties, even when a company faces a survival challenge, must align with legal protections for workers. For Qantas, the financial hit is substantial, but the reputational and regulatory implications could linger longer than the cash cost. This ruling could influence how other airlines and large employers plan layoffs during shocks and may encourage more cautious consultation with unions and staff.

Highlights

The courtroom outcome will shape how big firms approach crisis decisions in the years ahead.