The Federal Court has ruled that Qantas must compensate hundreds of workers it illegally sacked in 2020, with the total bill potentially reaching tens of millions of dollars.
The ABC reports that the decision follows the High Court’s ruling last year, which found that Qantas broke the law when it dismissed 1,700 ground staff during the COVID-19 pandemic.
Compensation based on test cases
Justice Michael Lee of the Federal Court awarded compensation based on three 'test cases', with payments of $30,000, $40,000 and $100,000 for non-economic losses.
Total compensation for affected workers will be capped at around one year’s salary, reflecting Justice Lee’s determination that the workers would likely have been made redundant by late 2021 due to outsourcing plans.
Final compensation amounts will be determined through mediation between Qantas and the Transport Workers’ Union (TWU), which is scheduled to take place before the matter returns to court in November.
The mediation will calculate the income losses for the 1,700 sacked employees.
Qantas, which faces a multi-million-dollar compensation bill, set aside $70 million in its 2024 financial results for this case, though the final payout may differ.
The airline has also issued an apology to its former employees and stated it would work to expedite payments to those affected.
Penalties sought
In addition to financial compensation, the TWU has signalled it will seek penalties against Qantas for its illegal conduct, a move expected to increase the total amount owed by the airline.
The union has suggested that the total compensation and penalty could exceed $200 million, sending a strong message to corporate Australia about illegal dismissals.
The case will return to the Federal Court in November where both the compensation and potential penalties will be finalised.