Freelancer has engaged in "stack ranking" of its employees and fired employees who were underperforming according to the internal performance review system, a court has heard.

ASX-listed technology company Freelancer and its chief executive Matt Barrie are defending a Federal Circuit Court claim by its former HR and operations manager he was unfairly sacked by the company because he made complaints about the company's personal trainer who was subsequently hired to do preform general office tasks.