Qantas illegal sackings compensation delay and court reprimand
Consensus Summary
A Federal Court judge, Justice Michael Lee, has sharply criticized Maurice Blackburn Lawyers for failing to distribute $120 million in compensation to 1,820 Qantas workers who were illegally sacked in 2020 by the July 31, 2026 deadline. The workers, represented by the Transport Workers’ Union, have waited more than five years for compensation, with only $5 million of the $40 million penalty paid so far. Justice Lee expressed no confidence in Maurice Blackburn’s process and warned the firm would face consequences for breaching court orders, rescheduling a hearing for August 6. The court is holding over $35 million that should be distributed to workers but remains tied up due to delays in finalizing the $120 million payout. Both sources agree on the key figures, including the number of sacked workers, the compensation fund, and the court’s involvement, though SMH provides additional details about the complexity of the compensation process, including the handling of over 17,500 tax documents.
✓ Verified by 2+ sources
Key details reported by multiple sources:
- Justice Michael Lee reprimanded Maurice Blackburn for failing to distribute $120 million owed to sacked Qantas workers by the July 31, 2026 deadline
- 1,820 Qantas workers were found to be illegally sacked in 2020
- Qantas agreed to a $120 million compensation fund for sacked workers, with $40 million as a penalty
- Only $5 million of the $40 million penalty has been paid so far
- The court is holding over $35 million that should be distributed to workers but cannot be released until the $120 million payout is finalized
- Justice Lee scheduled a longer hearing on the matter for August 6
- Workers have received an interim court-ordered $3,333 in direct compensation
- The Transport Workers’ Union (TWU) brought the case against Qantas in 2020
- Maurice Blackburn is handling the compensation process for more than 1,800 people
Points of Difference
Details reported by only one source:
- Justice Lee questioned why Maurice Blackburn only raised concerns in mid-June despite issues developing over months
- Maurice Blackburn’s compensation effort involved about 40 people, including external experts, who combed through more than 17,500 individual tax documents
- The workers have been waiting for compensation for more than five years
- The court has control of more than $35 million that is due to be distributed to employees as part of the penalty
- The case began after Qantas sacked workers to stop them from exercising a legal right to take industrial action
- The case followed a four-year federal court battle between Qantas and the Transport Workers Union
- Maurice Blackburn Lawyers said it was struggling with the number of claimants, getting accurate medical reports, and working with tax issues and Services Australia
- Justice Lee said Maurice Blackburn Lawyers must have known much earlier that it was going to miss the deadline
- Justice Lee reprimanded Maurice Blackburn for writing to him personally instead of filing an application in open court
- Justice Lee said the court is holding over $35 million that should be in the hands of workers and cannot be distributed until the $120 million payout is finalized
- The workers were expecting a share of $40 million as part of a penalty imposed on Qantas
Where the reporting differs
Details that conflict, or appear in only some outlets:
- SMH states '1820 illegal sackings' while ABC states '1,820 Qantas workers' were illegally sacked, with both numbers appearing in verified phrases but SMH omits 'workers'
- SMH mentions 'July 31 deadline' without a year, while ABC and SMH both confirm the deadline is 'July 31, 2026'
- SMH states Maurice Blackburn is handling compensation for 'more than 17,500 individual tax documents,' while ABC does not mention this number
- SMH states the case began in 2020, while ABC states the $120 million payout was agreed to in 2024, with both years appearing in verified phrases
Source Articles
Justice Lee blasted Qantas for 1820 illegal sackings. Now he’s turned on the workers’ lawyers
Maurice Blackburn had failed to pay 1820 workers $120 million in compensation on time and asked the court for more time.
Judge slams law firm over delayed $120m payout to sacked Qantas staff
Maurice Blackburn Lawyers has been handling a $120 million payout that Qantas agreed to pay its illegally sacked workers in 2024, with a judge rebuking the delayed compensation.