Israel Folau will not be moving forward with his unfair dismissal claim, after settling with Rugby Australia and NSW Rugby today.

The terms of the settlement are confidential, and a joint statement notes that Folau "does not condone discrimination of any kind against any person on the grounds of their sexuality".

Folau launched the case after his $4 million-a-year contract was terminated following an Instagram post claiming that "hell awaits" homosexuals, drunks and atheists.

Rugby Australia argued the post was a serious breach of its code of conduct, which emphasises an "inclusive environment".

"Rugby Australia and NSW Rugby do not in any way agree with the content of the social media post. Inclusiveness is one of Rugby's core values and it welcomes all people to the game, including all members of the LGBTI community," the joint statement says.

"While it was not Rugby Australia's intention, Rugby Australia acknowledges and apologises for any hurt or harm caused to the Folaus. Similarly, Mr Folau did not intend to hurt or harm the game of rugby and acknowledges and apologises for any hurt or harm caused."

The settlement means this topic might not get the "proper debate" it deserves about the extent to which employers can regulate employee's conduct, as flagged in an earlier HR Daily article.