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An employee has failed to convince the Federal Court that the real reason for his dismissal was not alleged s-xual harassment, but because he accused his manager of defamation on numerous occasions.

In April 2019, the Australian Taxation Office audit leader made a bullying complaint against the manager.

As part of her response to the allegations, the manager revealed that the employee had told a group of colleagues in 2017 that he was willing to have sex with her to gain a promotion. She said she became aware of the remark as a result of a text sent from one female team member to another.

Over the following three months, the employee sent numerous emails and other correspondence to ATO superiors, complaining about the manager's "disgusting" and defamatory allegation...