Qantas taken to High Court over COVID-19 sick leave

Airline faces yet another battle with its own employees over coronavirus measures. This is what the argument is.

| More on:
a court gavel and scales of justice

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Qantas Airways Limited (ASX: QAN) will face off against employees in the High Court of Australia on Wednesday.

Four unions are appealing against a Full Federal Court decision last month that the airline did not have to provide sick, compassionate or carer's leave for staff that had been stood down.

Qantas stood down about 20,000 employees at the start of the COVID-19 pandemic when it became apparent its planes would be grounded.

The Australian Council of Trade Unions (ACTU) claims Qantas' denial forced some seriously ill workers to take a redundancy for financial reasons.

"Qantas' behaviour toward the most unwell people in its workforce has been callous and illegal," said ACTU assistant secretary Scott Connolly.

"Stand downs are meant to be strictly limited to particular circumstances, but even in those circumstances workers should not be prevented from taking leave or being paid their basic entitlements."

Connolly added the High Court result could have ramifications for all Australian businesses and workers.

"This appeal is not just important for Qantas employees who've been unfairly denied access to their own sick, compassionate, personal or carer's leave, it's critical to all workers in Australia who may be stood down in the future."

The airline did provide annual and long service leave during the coronavirus stand down.

The Motley Fool has contacted Qantas for comment.

Running battle with its own staff

Law firm Maurice Blackburn is handling the appeal on behalf of the Transport Workers Union (TWU), the Electrical Trades Union (ETU), the Australian Workers Union (AWU) and Australian Manufacturing Workers Union (AMWU).

"Denying sick workers the leave they have built up and pushing them in some cases out of their jobs in order to access redundancy payments to pay bills is utterly despicable," said TWU national secretary Michael Kaine.

"Qantas has received over $800 million in taxpayers' support to help it during the pandemic but instead of acting like a responsible employer in return it is trashing lives and trashing jobs."

There was one dissenting judge, Justice Mordy Bromberg, in the Full Federal Court hearing. The unions are pursuing his line of argument in the High Court.

"The corollary of this contention is that there is no entitlement to any kind of paid leave whatsoever, whenever an employee cannot be usefully employed," he said in the judgment.

"That notion is startling in its reach and effect."

Just last week Qantas had a separate court victory against the unions. The Full Federal Court reversed an earlier judgment that the airline had illegally pocketed JobKeeper payments that should have been passed along to employees.

Motley Fool contributor Tony Yoo owns shares of Qantas Airways Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

ASX shares Business man marking buy on board and underlining it
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these shares.

Read more »

Man ponders a receipt as he looks at his laptop.
Technology Shares

Brokers rerate 3 leading ASX 200 tech stocks

Experts reveal their ratings on the ASX 200 tech sector's three biggest companies.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Share Gainers

Why Amaero, AMP, Block, and South32 shares are racing higher today

These shares are starting the week on a positive note. But why?

Read more »

Man with a hand on his head looks at a red stock market chart showing a falling share price.
Share Fallers

Why Brightstar, Eagers Automotive, Regis Resources, and Westpac shares are sinking

These shares are starting the week in the red. But why?

Read more »

growth charts with small cap written on a sticky note
Small Cap Shares

Expert names 3 ASX small-cap stocks to buy in July

ASX small-cap stocks have greater ability to generate outsized returns, but can be difficult to discover.

Read more »

A young couple hug each other and smile at the camera standing in front of their brand new luxury car
Share Market News

Are CAR Group shares a buy ahead of reporting season?

Will CAR Group shares take off from here?

Read more »

Worker on a laptop at an oil and gas pipeline.
Broker Notes

How much upside does Macquarie predict for Santos shares?

Let’s find out what the broker says.

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop.
Broker Notes

Does Macquarie rate REA Group shares a buy, hold or sell?

Let's have a look at what the broker thinks.

Read more »