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Qantas fined £43m for illegal layoffs

Following news of Qantas Airways being fined £43m for unlawful layoffs, Collyer Bristow associate Tom Herbert spoke to HR magazine about best practice for UK employers.

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Published 8 October 2025

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Qantas Airways has been fined A$90m (£43m) by Australia’s Federal Court for illegally dismissing more than 1,800 ground staff during the Covid-19 pandemic, the BBC reported yesterday (18 August).

This penalty is in addition to the A$120m (£57.5m) in compensation Qantas had agreed to pay its former employees in 2024, after losing multiple appeals in court.

Justice Michael Lee described the outsourcing of 1,820 baggage handling and cleaning jobs in late 2020 as the “largest and most significant contravention” of Australian labour laws in the country’s 120-year history, according to the BBC report.

When making mass layoffs, companies must meet consultation periods, follow redundancy laws, and apply fair selection criteria, advised Eleanor Tweddell, founder of HR consultancy Another Door.

How employers communicate is just as critical, Tweddell told HR magazine.

She added: “Employees should never be blindsided. Clarity and transparency are as important as compliance. People value fairness and being treated well. Most people understand it’s hard to handle, but sometimes there is no effort made to be fair and to handle [redundancies] in the best way.”

On Friday (15 August), news broke that the UK’s largest bioethanol plant would begin closing down operations on 18 August, after the government decided it would not offer the sector a rescue package, the BBC reported.

Leaders of Hull-based Vivergo Fuels, owned by Associated British Foods, told BBC reporters that the first redundancies would take effect today (19 August). The two plants employ 270 people, but their closure could affect thousands more in the supply chain.

Tim Gilbert, managing director at management consultancy Right Management, told HR magazine: “It’s important to recognise that redundancies have a profound impact not just on those leaving but also on those remaining and leading through change. It’s why outplacement support is so critical because it has a positive impact on those who remain, as well as providing individuals affected by redundancy with the tools to understand their transferable skills.”

For employers, this kind of support demonstrates a genuine commitment to people, which can help protect engagement, morale, and productivity amongst the wider workforce during periods of transition, Gilbert added.

Tweddell said: “A fair redundancy process is one where people feel they are individuals, and they’ve been heard and seen, even if the outcome is losing their job. Fairness isn’t about the cheque at the end, though enhanced redundancy pay, retraining, and redeployment options all matter. It’s about dignity, empathy, and ensuring people have the support to land on their feet.”

Speaking to HR magazine, Mike Hibberd, partner at law firm Doyle Clayton, explained: “Mass redundancies are a very technical area when it comes to employment law. There are two considerations that run in parallel when handling mass layoffs: individual redundancy consultations and collective consultations.”

Hibberd continued: “Any consultation process for individual redundancies must involve a fair process of meaningful consultation and consider any counterproposals by employees. This means exploring ways of avoiding the redundancies, whether by way of redeployment elsewhere in the organisation or restructuring.”

He added that collective consultation begins with providing information about the proposals to appropriate representatives. A clear outline of the business case is required so that representatives can consider the need for redundancies. Failure to comply with collective consultation obligations can result in a protective award being made at an employment tribunal, Hibberd explained.

To negotiate fair redundancies in the UK, companies must focus on transparency, objective selection criteria, and genuine consultation, Tom Herbert, associate at law firm Collyer Bristow, told HR magazine.

Herbert added: “Selection for redundancy should be based on objective, non-discriminatory criteria, such as skills, qualifications, and job performance. All affected employees should be made aware of these criteria and given the opportunity to challenge decisions via an appeals process overseen by impartial managers.”

Employers should offer career support, such as outplacement services and fair notice periods, to support staff through the transition, Herbert added. “Any complaints regarding fairness or procedure must be handled swiftly, and companies should keep comprehensive documentation to demonstrate that decisions were justified,” he concluded.

Please note: This article was originally published on 19 August 2025 by HR Magazine. You can read the original article here.

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Shorter Reads

Qantas fined £43m for illegal layoffs

Following news of Qantas Airways being fined £43m for unlawful layoffs, Collyer Bristow associate Tom Herbert spoke to HR magazine about best practice for UK employers.

Published 8 October 2025

Associated sectors / services

  • Employment law for employees
  • Employment law for employers

Authors

Qantas Airways has been fined A$90m (£43m) by Australia’s Federal Court for illegally dismissing more than 1,800 ground staff during the Covid-19 pandemic, the BBC reported yesterday (18 August).

This penalty is in addition to the A$120m (£57.5m) in compensation Qantas had agreed to pay its former employees in 2024, after losing multiple appeals in court.

Justice Michael Lee described the outsourcing of 1,820 baggage handling and cleaning jobs in late 2020 as the “largest and most significant contravention” of Australian labour laws in the country’s 120-year history, according to the BBC report.

When making mass layoffs, companies must meet consultation periods, follow redundancy laws, and apply fair selection criteria, advised Eleanor Tweddell, founder of HR consultancy Another Door.

How employers communicate is just as critical, Tweddell told HR magazine.

She added: “Employees should never be blindsided. Clarity and transparency are as important as compliance. People value fairness and being treated well. Most people understand it’s hard to handle, but sometimes there is no effort made to be fair and to handle [redundancies] in the best way.”

On Friday (15 August), news broke that the UK’s largest bioethanol plant would begin closing down operations on 18 August, after the government decided it would not offer the sector a rescue package, the BBC reported.

Leaders of Hull-based Vivergo Fuels, owned by Associated British Foods, told BBC reporters that the first redundancies would take effect today (19 August). The two plants employ 270 people, but their closure could affect thousands more in the supply chain.

Tim Gilbert, managing director at management consultancy Right Management, told HR magazine: “It’s important to recognise that redundancies have a profound impact not just on those leaving but also on those remaining and leading through change. It’s why outplacement support is so critical because it has a positive impact on those who remain, as well as providing individuals affected by redundancy with the tools to understand their transferable skills.”

For employers, this kind of support demonstrates a genuine commitment to people, which can help protect engagement, morale, and productivity amongst the wider workforce during periods of transition, Gilbert added.

Tweddell said: “A fair redundancy process is one where people feel they are individuals, and they’ve been heard and seen, even if the outcome is losing their job. Fairness isn’t about the cheque at the end, though enhanced redundancy pay, retraining, and redeployment options all matter. It’s about dignity, empathy, and ensuring people have the support to land on their feet.”

Speaking to HR magazine, Mike Hibberd, partner at law firm Doyle Clayton, explained: “Mass redundancies are a very technical area when it comes to employment law. There are two considerations that run in parallel when handling mass layoffs: individual redundancy consultations and collective consultations.”

Hibberd continued: “Any consultation process for individual redundancies must involve a fair process of meaningful consultation and consider any counterproposals by employees. This means exploring ways of avoiding the redundancies, whether by way of redeployment elsewhere in the organisation or restructuring.”

He added that collective consultation begins with providing information about the proposals to appropriate representatives. A clear outline of the business case is required so that representatives can consider the need for redundancies. Failure to comply with collective consultation obligations can result in a protective award being made at an employment tribunal, Hibberd explained.

To negotiate fair redundancies in the UK, companies must focus on transparency, objective selection criteria, and genuine consultation, Tom Herbert, associate at law firm Collyer Bristow, told HR magazine.

Herbert added: “Selection for redundancy should be based on objective, non-discriminatory criteria, such as skills, qualifications, and job performance. All affected employees should be made aware of these criteria and given the opportunity to challenge decisions via an appeals process overseen by impartial managers.”

Employers should offer career support, such as outplacement services and fair notice periods, to support staff through the transition, Herbert added. “Any complaints regarding fairness or procedure must be handled swiftly, and companies should keep comprehensive documentation to demonstrate that decisions were justified,” he concluded.

Please note: This article was originally published on 19 August 2025 by HR Magazine. You can read the original article here.

Associated sectors / services

  • Employment law for employees
  • Employment law for employers

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