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ARTICLE · 26 SEPTEMBER 2023

Don't wing your outsourcing decisions: Takeaways from the Qantas decision

Holding Redlich
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Carefully consider any decision to outsource to ensure that reasons for outsourcing don't include taking away workplace rights.

AustraliaEmployment and HR
Jennifer Van Bronswijk
Jennifer Van Bronswijk
Julia Wyatt
Julia Wyatt
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The High Court of Australia's recent decision in Qantas Airways Limited v Transport Workers Union of Australia [2023] HCA 27 confirms that an employer is prohibited from taking adverse action against an employee to prevent the exercise of a future workplace right.

Whilst significant, this decision does not suggest that employers should avoid outsourcing arrangements. Rather, it highlights that employers should carefully consider the decision to outsource and ensure that the reasons to outsource do not include preventing employees from exercising workplace rights.

Background

On 30 November 2020, Qantas announced that its ground handling operations would be outsourced to third-party suppliers (outsourcing decision). As a result, thousands of Qantas Airways Limited (QAL) and Qantas Ground Services Pty Ltd (QGS) employees were made redundant (collectively, 'Qantas' employees'). Many of these employees were members of the Transport Workers Union of Australia (TWU).

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This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.

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