Australian Radio Network (ARN) has denied responsibility for broadcaster Jackie 'O' Henderson's alleged post-traumatic stress disorder and distress, asserting that she had already decided to leave her role and rejected a substantial offer from the company. The claims were detailed in an amended defense filed by ARN, owner of KIIS 106.5, in the Federal Court.
Henderson filed a Fair Work lawsuit against ARN following an on-air altercation with former co-host Kyle Sandilands in February that reportedly left her in tears. Her legal team had communicated to ARN that she could no longer work with Sandilands due to alleged ongoing bullying and sought a different program and timeslot. ARN subsequently terminated her contract.
In her legal claims, Henderson argued that the broadcaster was liable for her poor mental health, citing unlawful termination. ARN's defense, however, contends that any decline in Henderson's mental health was not their liability because she had already resolved to leave the show prior to her contract's termination in March. The network also stated that Henderson's alleged losses were exacerbated by her refusal to accept or negotiate a $2 million per year offer to host an afternoon drive show, a role that represented a fraction of her breakfast radio salary.
ARN's court documents further suggest that even if her contract had not been terminated, Henderson had already decided to move to a different show at a different time and would not have continued in her original role. The company also claimed that any losses Henderson incurred would have been limited, as her contract was nearing its end.
Separately, Henderson has accused ARN of misleading the stock market by omitting key details surrounding her argument with Sandilands. ARN had announced Henderson's departure by stating she could no longer work with Sandilands, leading to the termination of her services agreement. Henderson claims this statement was misleading by failing to include the context of psychological damage she allegedly suffered from Sandilands' repeated alleged attacks.
An expert psychiatrist reportedly diagnosed Henderson with post-traumatic stress disorder as a result of the alleged bullying. ARN has defended its ASX statement, arguing that Henderson herself insisted on confidentiality regarding the matters, thus influencing the company's public statements.
Henderson has disputed ARN's version of events, calling it illogical and asserting no causal link between her insistence on confidentiality and the content of ARN's announcement. ARN had previously argued that Henderson effectively terminated her own contract by attempting to withdraw from major obligations, labeling her a 'bad leaver' under a loan share agreement tied to her contract. This designation could require her to repay $3 million worth of ARN stock.
ARN's amended defense states its board has the authority to determine if shares are forfeited under 'bad leaver' circumstances, a determination the board made on April 29. The shares were sold on May 5 to repay the loan. Henderson's claim is that ARN unlawfully terminated her contract, invalidating the 'bad leaver' clause.
The dispute stems from a February 20 segment where Sandilands commented on Henderson's "fixation" on astrology, calling her "almost unworkable." Henderson left the studio in tears, with Sandilands reportedly remarking, "You can't start crying about it, it's not that big a deal." Henderson claims ARN did not intervene during this exchange.
Following this incident, Henderson's lawyers sent a letter on February 26, notifying ARN of the alleged bullying and accusing the broadcaster of failing to provide a safe workspace. ARN has denied liability, stating it took appropriate action through welfare checks and internal discussions.
Kyle Sandilands' own $100 million contract was terminated after Henderson's departure. He settled his unfair dismissal claim against ARN in June, reportedly receiving approximately $12 million from an initial claim of $82.5 million.
Henderson's case is scheduled for a hearing in Sydney's Federal Court in October.