Israel Folau legal battle win will mean sporting, employment contract changes in future

A Sydney University academic says if Israel Folau wins his upcoming legal battle with the Australian Rugby Union, it could force a huge change in terms of player contracts which could ultimately trickle down to everyday employment contracts across all industries.

• Folau seeks millions in lost earnings
• ‘Folau has a long history of going back on his word’

A top employment law expert is predicting future sporting contracts will need to be overhauled in Australia if Israel Folau is victorious in his upcoming legal battle with Australian Rugby Union.

Sydney University academic Giuseppe Carabetta, a senior lecturer in business and employment law, says a win for Folau could force a huge change in the terms of player contracts which could ultimately trickle down to everyday employment contracts across all industries.

“It could be a major turning point,” says Carabetta, who said players and, ultimately, employees stand to gain more power and control if Folau wins his case.

Israel Folau’s upcoming legal battle with Rugby Australia could prove to be a “major turning point”. Picture: Geoff Caddick/AFP

MORE NEWS

RUGBY BOSSES INSURE AGAINST FOLAU CLAIM

NEIGHBOURS AT WAR OVER ‘LOUD’ AIR CONDITIONER

BROTHER, 22, JAILED FOR USING TASER ON YOUNGER SISTER

“If Israel wins there will be a narrowing of the terms in contracts.

“Employers, or in the case of sporting codes the clubs, they will now have to be much more specific in terms of what they can control in a code of conduct. “They will essentially have less power.

“And this is something that is becoming more and more common. Where do you draw the line when you employ someone?

“Should an employer be able to govern a person’s private sphere.

“And at what place does the workplace stop and the private sphere begin?” “It’s really tricky.”

In what will be one of the most closely-watched legal cases in Australian sporting history, Folau last week flagged his intention to assert his dismissal cost him the chance to become the Wallabies’ greatest tryscorer and the best years of his career, as part of his damages claim against Rugby Australia and the NSW Waratahs.

There could be huge changes in sporting and employment contracts in the future.

Lawyers for Folau on Thursday lodged an unfair dismissal claim with the Fair Work Commission against his former employers.

Folau will argue that under the Fair Work Act his employment was unlawfully terminated because of his religion.

The 30-year-old dual international is seeking the value of his $5 million contract as well as other potential earnings following his participation in this year’s Rugby World Cup.

Folau, a devout Mormon, was sensationally sacked after a series of what were described by Rugby Australia as offensive social media posts including one which claimed homosexuals go to ‘hell’.

Mr Carabetta says it’s an issue that has divided his younger and older students.

“My younger students always say; “It’s homophobic,” and the older ones say; ‘No it’s religious freedom’. But it’s not that simple. It’s a real chestnut.”

Folau is seeking the value of his $5 million contract and other potential earning claiming he was unlawfully terminated from Rugyb Australia. Pictured is Chief Executive of RA Raelene Castle. Picture: Don Arnold/Getty Images

Prominent Sydney lawyer Paul McGirr says it is too early to tell what affect Folau’s case will have on future contract negotiations but that professional clubs and codes will be carefully monitoring case with a “wait and act approach”.

Mr McGirr, whose Sydney based firm has overseen the contracts for several high profile NRL stars, says clubs will now need to juggle social media clauses with a players right to freedom of speech.

“It’s very early days but all profession sporting clubs and bodies will have a very keen eye on the Folau case,” Mr McGirr said.

“The knee jerk reaction from clubs and codes will be to insert clauses into players’ contracts,” he said. “But it has to be balanced with the right to freedom of speech.

“And if Folau wins, the clubs and codes could potentially find themselves in a precarious legal position.

“So I think we will see a wait and act approach.”