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Sacking a worker for being unable to perform the inherent requirements of her role, which included reporting to a manager who had bullied her, was not unlawful adverse action, an employer has proved.

The Federal Circuit Court heard that the SBS senior producer complained in 2015 that her manager – the executive producer – had been making disparaging and offensive remarks towards her.

The employer found the allegations were unsubstantiated, but following a Fair Work Commission dispute about the matter, an external investigation concluded the manager had in fact engaged in bullying and harassment.

After a 2016 mediation failed to resolve the relationship difficulties, the employee successfully claimed workers' compensation for an adjustment disorder and didn't return to work until late 2017...