Qantas workers to receive $38 million compensation after court ruling

In Australia, unlawfully sacked Qantas workers will receive a $40 million payout following a Federal Court ruling. The court found that Qantas had terminated 1,820 baggage-handling, cleaning, and ground staff roles during the COVID-19 pandemic to limit union bargaining power. Justice Lee ordered that approximately $38 million be paid to the affected workers without further delay, emphasizing the need for transparency and fairness in the compensation process.

Qantas workers to receive $38 million compensation after court ruling
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business Published Aug 6, 2026

Topic overview

In brief

  • The Federal Court ruled that Qantas unlawfully sacked 1,820 workers during the COVID-19 pandemic.
  • Justice Lee ordered the immediate payment of approximately $38 million to affected workers.
  • The decision is seen as a significant victory for workers' rights and accountability in corporate practices.

Summary

In Australia, unlawfully sacked Qantas workers are set to receive a significant compensation payout following a Federal Court ruling. The court found that Qantas had unlawfully terminated the employment of 1,820 baggage-handling, cleaning, and ground staff roles during the COVID-19 pandemic in 2020. This decision was made to limit union bargaining power during wage negotiations. The court has mandated that approximately $38 million, which had been held in the court's coffers, be distributed to the affected workers without further delay. Justice Lee emphasized the need for transparency and criticized the compensation administrator for the prolonged delays in processing the payments.

The Transport Workers' Union had previously received a $50 million penalty for bringing attention to Qantas's illegal actions. Justice Lee's ruling comes after a series of complications regarding the assessment of non-economic losses for the affected workers. The administrator had faced challenges with independent medical expert reports, which were deemed insufficient for determining compensation. Despite these issues, Justice Lee insisted that the payments should not be further delayed, stating that it was unfair for workers who had engaged with the administrator to wait any longer.

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Updated Aug 6, 2026

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