Rugby Australia and the Queensland Rugby Union have released players Izack Rodda, Harry Hockings and Isaac Lucas from their contract with immediate effect.
The decision follows after the Reds trio terminated their contract with the club as they declined to accept a reduction in pay following which Queensland Reds stood them down on Monday.
Earlier, an agreement between Rugby Australia and Players' Association was reached that the players will take an average 60 per cent short-term pay cut to deal with the ongoing crisis created by the pandemic coronavirus.
However, Rodda, Hockings and Lucas were not ready for a wage cut and a move from the club to nominate them for the Australian government's JobKeeper subsidy.
The players' agent Anthony Picone expressed displeasure at the way the issue was handled by the Reds.
"It is disappointing the QRU chose to air the issues publicly," Picone said in a statement.
"Given the parlous state of rugby in Australia and Queensland we offered the organisation the opportunity to deal with these matters in private and confidentially. This offer was rejected."
Rodda and Lucas had contract with the Reds until the end of the 2023 season, while Hockings contract was expiring with the end of the 2020 season.