Australia’s largest airline has been ordered to pay a landmark penalty of $90 million for what has been dubbed the largest case of illegal sackings in the country’s history.

Qantas outsourced more than 1800 baggage handlers, cleaners and ground staff in 2020, in a move the Federal Court ruled was designed to curb union bargaining power in wage negotiations.

The embattled airline’s appeal to the High Court was unsuccessful, paving the way for the penalty to be awarded on Monday.

The Transport Workers Union sought the maximum penalty of $121 million, while Qantas urged Justice Michael Lee to impose a “mid-range” penalty between $40 million and $80 million.

The Federal Court judge cited the “sheer scale of the contraventions, being the largest of their type” as a reason to impose a penalty that would deter other businesses from similar conduct.

He ordered Qantas to pay $90 million in penalties, $50 million of which is to be paid directly to the union that brought the proceedings and highlighted the illegal conduct.

“To deprive someone of work illegally is to deprive someone of an aspect of their human dignity, and this is not assuaged simply by expressions of regret,” Justice Lee said.

He was scathing about the embattled airline’s conduct after the outsourcing, pointing to efforts to place a “less than candid” picture of the outsourcing decision before the court.

He noted Qantas had apologised publicly but then had attempted to deny any compensation payments to the affected workers.

Qantas will have to pay the hefty bill on top of a $120 million compensation payment it has made to the affected ground staff for their economic loss, pain and suffering following the outsourcing.

However, Justice Lee said he didn’t have enough evidence to be convinced those payments would be made.

The court was told the scandal-plagued airline began to finally accept responsibility for its actions in 2023, Justice Lee noted, which coincided with the departure of former CEO Alan Joyce.

The courtroom was packed with union members and representatives, who hugged and exchanged smiles after Justice Lee handed down his decision.

It comes after Qantas also sold tickets to cancelled flights for several years, triggering more legal turmoil and a $100 million fine after it was sued by the Australian Competition and Consumer Commission.