Qantas Airways Hit with A$90 Million Fine for Illegal Sacking

Qantas Airways has been fined A$90 million for illegally dismissing 1,800 ground staff and replacing them with contractors during COVID-19. The Federal Court Judge imposed the penalty to ensure the offense is not perceived as a mere business cost. A$50 million will be paid to the Transport Workers' Union.

In a significant legal development, Qantas Airways has been levied a hefty A$90 million fine for its decision to unlawfully terminate 1,800 ground staff, opting to replace them with contractors during the COVID-19 crisis, according to a court verdict delivered on Monday.

The Federal Court of Australia Judge Michael Lee emphasized that the penalty, close to the maximum allowed under the country's workplace laws, serves as a deterrent for other large public companies tempted to bypass legalities for financial gain.

A significant portion of the penalty, amounting to A$50 million, will be directed to the Transport Workers' Union. This fine stems from infringements during the pandemic, which have already led to a A$120 million settlement agreement with the affected workers. Qantas shares mildly dipped following the court's decision.

(With inputs from agencies.)