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Business & WorkAustralia · 2020

Qantas outsourcing: the court case and two separate funds

The 2020 jobs proposal led to an unlawful-action finding, compensation and a civil penalty. Later records explain which payments had progressed.

THE ORIGINAL STORY25 August 2020
Elysse Morgan and David Chau
25 August 2020
Qantas plans to cut another 2,500 ground crew jobs, on top of 6,000 existing redundancies
Qantas aircraft grounded at Sydney Airport during pandemic travel restrictionsABC News: John Gunn
Read the original report

Ground-handling jobs face outsourcing.

The ABC’s original report described a proposal affecting almost 2,500 roles across Qantas and Jetstar during the pandemic. It said Qantas had not yet made its final decision. The grounded-aircraft photograph placed the jobs announcement in that context. The later case concerned 1,820 former employees: that litigation figure should not be substituted for the broader prospective headline count.

THEN WHAT?

Penalty payments progressed. Compensation remained separate.

Editorial illustration of aircraft and ground-handling equipment

The High Court upheld the unlawful-action finding. Qantas funded a $120 million compensation scheme and faced a separate $90 million penalty. A September 2026 update reports penalty payments to most affected workers, while compensation assessments continued.

High Court judgment · 13 September 2023

The story, in dates

Event dates
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A final decision followed the proposal

The High Court’s chronology records the final outsourcing decision on 27 November 2020 and its public announcement on 30 November. The August headline captured an earlier proposal; the later legal finding concerned the decision that was made.

High Court judgment · 13 September 2023

The outsourcing decision was unlawful

The High Court dismissed Qantas’s appeal. The finding concerned adverse action taken to prevent the future exercise of workplace rights under the Fair Work Act. It was a civil employment-law dispute, not a criminal conviction. Outsourcing in general was not prohibited by this judgment.

High Court judgment · 13 September 2023 · Independent penalty report · ABC · 18 August 2025

A compensation fund was agreed

Qantas and the TWU agreed a $120 million fund for 1,820 affected former employees. The agreement included economic and non-economic loss, compensation to the union and administration costs. In August 2025, Qantas said it had paid the money into the fund. Funding the scheme did not establish that every individual assessment or payment was complete. The airline accepted the later penalty decision and apologised to affected employees and their families.

Compensation agreement · Qantas · 17 December 2024 · Penalty and funded compensation · Qantas · 18 August 2025 · Compensation scheme · Maurice Blackburn

The penalty was separate

The Federal Court imposed a $90 million penalty. It directed $50 million to the TWU; the remaining $40 million was subsequently reserved for workers. These figures divide one penalty, rather than adding two further penalties. This worker share was separate from the compensation scheme.

Independent penalty report · ABC · 18 August 2025 · Federal Court distribution orders · 6 August 2026, as amended · Penalty payment update · William Roberts · 7 September 2026

Distribution no longer awaited compensation assessments

The court ordered a process for distributing the remaining penalty fund using workers’ length of service. The orders expressly preserved compensation entitlements: a penalty payment was not conditional on signing a release or receiving compensation. Confidential worker schedules, bank details and individual amounts are not reproduced here.

Federal Court distribution orders · 6 August 2026, as amended

Most penalty payments were processed

William Roberts Lawyers’ update dated 7 September says the court processed payments to a majority of affected workers on 4 September. It described further arrangements for remaining payments. The firm said compensation assessments continued, with estimated notices expected around October 2026. That was an expectation, not confirmation that all compensation had been paid.

Penalty payment update · William Roberts · 7 September 2026 · Federal Court distribution orders · 6 August 2026, as amended

Sources for this update

  1. 01High Court judgment · 13 September 2023
  2. 02Compensation agreement · Qantas · 17 December 2024
  3. 03Penalty and funded compensation · Qantas · 18 August 2025
  4. 04Independent penalty report · ABC · 18 August 2025
  5. 05Federal Court distribution orders · 6 August 2026, as amended
  6. 06Penalty payment update · William Roberts · 7 September 2026
  7. 07Compensation scheme · Maurice Blackburn

The story continues when the evidence does.

Status checked on 10 October 2026. This account covers ground-handling litigation and the September payment update. It does not establish that every worker received money or that the compensation process has finished. Other Qantas passenger, wage and industrial disputes are separate.

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