Federal Court: Qantas Workers to Share $35m Penalty by Length of Service

• The Federal Court has ordered Qantas to distribute approximately $35 million in penalties to affected workers, with the payout tied to their length of service.
• The decision follows a long-standing compensation scheme that was stalled due to various issues, including deficiencies in medical reports and unresolved questions over possible repayments to Services Australia.
• Workers will receive their share of the penalty according to their tenure, with each worker's years of service as a proportion of the total determining their share.
• The decision highlights the importance of timely compliance with Fair Work Act obligations and the need for effective compensation schemes.

The court ordered the fund shared by tenure – each worker's years of service as a proportion of the total.

The Federal Court has ordered Qantas to distribute approximately $35 million in penalties to affected workers, with the payout tied to their length of service. This decision follows a long-standing compensation scheme that was stalled due to various issues, including deficiencies in medical reports and unresolved questions over possible repayments to Services Australia. The court found that any distribution tied to the scheme would carry its timetable and contingencies, leading it to replace earlier orders with a new directive allowing for immediate payment. The $35 million fund will be shared among workers according to their tenure, with each worker's years of service as a proportion of the total determining their share.

The case stems from Qantas's unlawful outsourcing of its ground handling operations in 2020, which breached the Fair Work Act 2009 (Cth). The court ordered Qantas to pay a $90 million penalty, with $50 million going to the Transport Workers' Union of Australia and $40 million set aside for affected workers. However, the compensation scheme run by Maurice Blackburn was delayed due to various issues, leading the court to intervene and direct the payment of penalties to workers immediately. The decision highlights the importance of timely compliance with Fair Work Act obligations and the need for effective compensation schemes.

This development has significant implications for lawyers advising clients affected by the Qantas unlawful outsourcing case. Workers will now receive their share of the penalty, approximately $35 million, distributed according to their length of service. This may impact compliance with Fair Work Act obligations and highlight the importance of timely compensation schemes. The decision also underscores the need for effective class action mechanisms and judicial oversight to protect group members' interests.

Lawyers advising clients affected by the Qantas unlawful outsourcing case should note that workers will now receive their share of the penalty, approximately $35 million, distributed according to their length of service. This development may impact compliance with Fair Work Act obligations and highlight the importance of timely compensation schemes.

Source: Original reporting via Australasian Lawyer