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:

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.

a court gavel and scales of justice

Image source: Getty Images

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 ASX Share Market News

Three children wearing athletic short and singlets stand side by side on a running track wearing medals around their necks and standing with their hands on their hips.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a sour start to the trading week today.

Read more »

Woman checking out new laptops.
Consumer Staples & Discretionary Shares

Down 14% today: Are JB Hi-Fi shares now a bargain-bin buy?

Could JB's plunge mean a bargain buy?

Read more »

A young woman holds her hand to her ear and leans sideways as if to listen to something that's surprising her as her eyes and her mouth are wide open.
ASX Share Market News

Why Lendlease, A2 Milk and JB Hi Fi shares are turning heads on Monday

Lendlease, A2 Milk and JB Hi-Fi shares are making waves on Monday. But why?

Read more »

Young successful engineer, with blueprints, notepad, and digital tablet, observing the project implementation on construction site and in mine.
Broker Notes

Macquarie says this Gina Rinehart-backed miner could pile on more than 150% in value

A big jump in rare earths resources has the analysts interested.

Read more »

A couple sits on a sofa, each clutching their heads in horror and disbelief, while looking at a laptop screen.
ASX Share Market News

These are the 10 most shorted ASX shares

Short sellers have their eyes on these shares.

Read more »

Two IT professionals walk along a wall of mainframes in a data centre discussing various things
Broker Notes

Data centre work could help drive this ASX industrial stock to a record high

This company has a track record of strong growth.

Read more »

Two men in business attire play chess.
Mergers & Acquisitions

Steadfast Group shares in focus after $6.00 per share takeover proposal update

Exclusive talks have been extended until 21 August.

Read more »

A view of competitors in a running event, some wearing number bibs, line up together on a starting line looking ahead as if to start a race.
Broker Notes

Buy, hold, sell: Sonic Healthcare, AMP, CBA shares

Let's start the week with some fresh ratings from the experts. 

Read more »