TechOne Faces $80M Bullying Compensation Lawsuit

TechnologyOne is back in the spotlight as its founder and top executives are set to face cross-examination in an $80 million unfair dismissal case. The decade-long legal saga aims to determine whether the dismissal of a former Victorian state manager was legally justified, but it may also expose how internal culture and leadership dynamics played a role in the fallout.

TechnologyOne, a major software company, is undergoing a retrial in the Federal Court after earlier rulings were overturned. The case was originally launched by a former executive who worked at the company from 2006 to 2016 and claims persistent bullying and exclusion by leadership. The former manager alleges the toxic work culture significantly impacted his mental health and permanently harmed his employment prospects.

The original judgement awarded the former executive $5.2 million, but that decision was set aside by a higher court. Now, the compensation figure being sought has ballooned dramatically, with estimates potentially reaching $80 million. This larger claim includes around $40 million in unpaid bonuses and incentive payments, according to barristers representing the former manager.

Much of the recent hearings focused on conflicting testimonies from current and former employees, HR leaders and mental health professionals. Representatives for the company argue that the former executive’s performance declined ahead of his dismissal, citing falling revenue figures as evidence. Opposing expert testimony suggests the manager was capable and unfairly targeted.

The upcoming cross-examination of TechnologyOne’s founder and current CEO could prove pivotal. Their statements are expected to delve into internal decision-making processes and leadership conduct at the time of dismissal. The question at the centre remains whether the dismissal was based on business needs, or an attempt to oust a dissenting voice.

Whatever the outcome, the case shines a light on how dismissal processes and workplace culture in large corporations can have long-lasting legal and reputational consequences. With potential damages nearing record-breaking levels, this may set a new benchmark for corporate employee relations in Australia.

Source: Australian Financial Review, IT Brief, Stop Bullying