Illegally sacked Qantas ground staff to share $40 million payout after landmark court ruling

More than 1,700 former Qantas ground staff who were illegally dismissed during the COVID-19 pandemic will receive a share of $40 million, following the conclusion of one of Australia’s most significant workplace law cases.

The Federal Court heard this week that the remaining $40 million from penalties imposed on Qantas will now be distributed to affected workers. Each worker will receive an initial payment of $3,333, with the balance paid on a pro-rata basis according to individual entitlements.

The payments stem from a landmark ruling by Justice Michael Lee, who last year found that Qantas acted unlawfully when it outsourced ground handling roles in 2020. The court determined that the airline breached protections under the Fair Work Act and was partly motivated by a desire to prevent industrial action.

Qantas was ordered to pay $120 million in compensation to the workers and a further $90 million in penalties. Earlier this year, $50 million of the penalty was awarded to the Transport Workers’ Union (TWU), with the remaining $40 million now directed to the affected employees.

In his judgement, Justice Lee said work was central to dignity and social participation, noting that unlawful dismissal deprived individuals of more than income alone. Attempts by Qantas to overturn the decision through appeals to both the Full Federal Court and the High Court were unsuccessful.

Justice Lee said Tuesday’s hearing marked the end of the prolonged legal process, which has spanned more than five years.

TWU national secretary Michael Kaine described the case as a “David and Goliath” battle, adding that the payments would help workers move forward after years of uncertainty.

He said the ruling should serve as a clear message to employers about accountability and the need to value secure, lawful employment practices across supply chains.