Qantas Airways has been fined A$250,000 by the NSW District Court for illegally standing down a health and safety worker who voiced concerns about cleaning procedures for aircraft from China during the early stages of the COVID-19 pandemic.

The employee, Theo Seremetidis, was found to have been discriminated against in violation of the Work, Health and Safety Act, resulting in a personal damages award of A$21,000.

Qantas accepted the penalties and agreed to the damages payment, with half of the fine allocated to SafeWork NSW.

Separately, Qantas is facing legal action in the Federal Court for unlawfully outsourcing 1700 ground staff, a move previously declared illegal by the High Court, with unresolved compensation negotiations after failed mediation with the Transport Workers Union.

These legal issues compound Qantas' reputational challenges as the airline also deals with other lawsuits, controversies, and transitions leadership following the retirement of CEO Alan Joyce.