The national Health Services Union is celebrating a "significant victory" after its Victorian branch boss Diana Asmar was barred from carrying out her secretary duties.
Federal Court Justice Craig Dowling made orders on Friday restricting Ms Asmar's role in the Health Workers Union (HWU) until he decides whether it should be placed into administration.
The HSU is seeking administrators, claiming the Victorian branch is dysfunctional after the Fair Work Commission alleged Ms Asmar falsely claimed more than $120,000 as business expenses.
Justice Dowling first made orders on October 7 limiting Ms Asmar's powers, including preventing her from dismissing any employees or altering their employment.
Ms Asmar made an undertaking to the court that she would follow the judge's orders.
Two union officials from the Victorian branch and five call centre workers were stood down in November after Ms Asmar allegedly made a speech denouncing those whom she claims had betrayed her.
HSU barrister Malcolm Harding SC said under union rules, Ms Asmar was the only one with the power to terminate someone's employment and argued she had breached her court undertaking - a claim her lawyers denied.
Mr Harding pushed for further restrictions and Justice Dowling on Friday made fresh orders restraining Ms Asmar from carrying out the duties of branch secretary.
She will be restricted until the HSU's application for the branch to be placed into administration is heard and determined by the court.
"It is not necessary for me to determine whether the undertakings .... have been breached," Justice Dowling said in his judgment.
"I am concerned that the orders and undertakings made on October 7, 2024, have not adequately protected the position of the branch and the union."
Justice Dowling also ruled the two union officials could not be stood down while the case was still before the courts.
Other branch officials will not be allowed to alter the employment or take disciplinary action against any employees of the Victorian branch until the case is decided.
HSU national secretary Lloyd Williams welcomed Justice Dowling's decision as a "major win".
"This is a significant victory for our members," he said on Friday afternoon.
"It is a major step towards refocusing the HWU on making members' interests its unwavering priority."
The HSU's application is due to return to the Federal Court in April for an eight-day hearing.
The Fair Work case against Ms Asmar is listed for a case management hearing on Monday.
