A Tabcorp chief executive has come out swinging against the gaming giant, claiming sexist remarks like the one he allegedly made were rife among the company's directors.
Adam Rytenskild was fired in March 2024 after he allegedly told his colleagues he would perform oral sex on a chief female regulatory officer to secure a Victorian gaming licence.
He denies making the comment and claims his employment was unlawfully terminated without being given an opportunity to address the allegations or seek legal advice.
The allegation against him wasn't serious enough to warrant his dismissal and was instead consistent with the sexual and disrespectful comments made by other board members, Mr Rytenskild alleges.
He accused Tabcorp director Raelene Murphy of making an "uncouth" sexual remark about her "big tits" during an interview, which he said was met with laughter and repeated on multiple occasions by the executives.
Board member Janette Kendall later said she knew Ms Murphy was the right fit for the role when she made that comment, according to Mr Rytenskild.
He also claimed director Justin Milne, who is the former ABC chair, often used sexist language when referring to women and spoke disparagingly about paying respects to Aboriginal people and elders.
The allegations against Tabcorp's board members were embarrassing and likely to be thrown out of court, the company's lawyers argued in a defence filed in the Federal Court.
They say Mr Rytenskild's dismissal was warranted because he made an unprofessional, "sleazy" and misogynistic comment in an August 2023 meeting that amounted to serious misconduct.
The comment was reported by a whistleblower and confirmed by two senior employees during an external investigation, according to Tabcorp.
Mr Rytenskild was not given the opportunity to participate in the investigation and only learned about the allegations during the March 14 meeting in which he was fired.
He claims he was shocked and panicked during the meeting when he asked if he could resign instead of being fired, and he was only given a few hours to make a decision.
Tabcorp issued a statement to the ASX that afternoon announcing Mr Rytenskild had resigned after using offensive language which made his position untenable.
The former chief executive claims the statement defamed him by implying he made the inappropriate remark and it amounted to misconduct that warranted his immediate dismissal.
Tabcorp denies the statement is defamatory and argues that, even if it was, it was true and reflected the honest opinions of the board members.
The company and its former chief executive have been ordered to attend mediation in the next two months.
Should mediation fail, the legal battle will return to the Federal Court in June.
Tabcorp, Australia's largest gambling company, is now led by former Australian Football League chief executive Gillon McLachlan.
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