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An employer has been ordered to pay a manager more than $2.25 million in compensation, penalties and costs after its CEO "effectively destroyed" her life.

The Hawkesbury Race Club marketing manager, who had been with the organisation since 1991, claimed the employer took adverse action against her because she complained about the CEO's bullying and intimidating behaviour, and because she took sick leave. She also sought damages for a psychiatric injury.

The Federal Court heard that in July 2016, just months after the CEO had started in his role, the manager told him she felt like he didn't trust her to perform her duties and that she was losing sleep over it.

He did nothing to address her concerns, however, and in a meeting a week later, he brought up his own issues and began micromanaging her...