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court reporter Kristian Silva

Dispute between independent MP Monique Ryan and Sally Rugg unresolved, Federal Court hears

Sally Rugg leaves the Federal Court in Melbourne with her lawyer Josh Bornstein. (ABC News: Kristian Silva)

Lawyers for Federal MP Monique Ryan and her chief of staff Sally Rugg have had "a robust exchange of views", but their workplace dispute before the Federal Court of Australia remains unresolved.

Ms Rugg took Ms Ryan and the Commonwealth to the Federal Court in January, alleging she was due to be sacked after refusing to work "unreasonable" hours.

In her filing application, Ms Rugg called for a court injunction to prevent the termination from taking place on January 31.

She also argued for financial compensation, and for Ms Ryan and the Commonwealth — the official employer of parliamentary staffers — to be fined for alleged breaches of the Fair Work Act.

The parties told the Federal Court on February 3 they would enter into mediation before returning a fortnight later.

Today, Commonwealth lawyer Nicholas Harrington said the parties met on Thursday for four hours of mediation.

"There was a robust exchange of views at that mediation. As often happens, and there was a lot to think about," he told the court.

Independent federal MP Monique Ryan outside Friday morning's court hearing. (ABC News: Kristian Silva)

Mr Harrington and lawyers for Ms Rugg and Ms Ryan agreed more discussions were needed, and requested a two-week extension from the court.

"With great optimism … two more weeks will give the parties the opportunity to develop the path which we were walking yesterday," he said.

Judge Debbie Mortimer agreed to adjourn the case until March 3, but said some would consider one month of negotiations to be adequate.

She said if their differences were not resolved by that date, they may have reached "a fork in the road", and would require the court to make a decision on Ms Rugg's application.

Both Ms Rugg and Ms Ryan have filed affidavits — which include specific details about their dispute — however, the court ordered they not be released to the media or the public.

During the mediation process, Ms Rugg has continued to receive paid leave from Ms Ryan's office.

Ms Rugg and Ms Ryan attended court in-person but were not required to give evidence, and neither spoke as they left the precinct.

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