The Australian Broadcasting Corporation (ABC) could be facing significantly penalties after the Federal Court found it had unlawfully terminated the employment of Antoinette Lattouf over the journalist's 2023 social media post about the Gaza war.

The court has found the ABC did not follow the correct processes in the decision to remove Lattouf from air, leading to errors. Lattouf's argument was that the ABC cut short her stint as a fill-in radio presenter in December 2023 due to her political views, her race and after lobbying from pro-Israel groups. Hours before her sacking, Lattouf shared a post from Human Rights Watch (HRW) that accused Israel of war crimes, which Israel denies.

In his summation on Wednesday, Justice Darryl Rangiah found the ABC sacked Lattouf for reasons including her opinions on the Israeli military campaign in Gaza. He rejected allegations the presenter - who is of Lebanese heritage - was fired because of her race. She was awarded damages of $70,000 but the judge has opened the door to further penalties and will hear from both sides.

Maurice Blackburn Lawyers, representing Lattouf, welcomed the Federal Court's decision and said it will now be seeking significant penalties. Josh Bornstein of Maurice Blackburn stated claimed the ABC spent over $1 million in taxpayer money on the case, rejecting a settlement offer of $85,000 from Lattouf in August 2024.

"When organisations capitulate to bad faith complaints against staff, the results are often perverse. The ABC claimed that it sacked our client because she highlighted a Human Rights Watch report that was already being reported on by the ABC," Bornstein said.

"The Federal Court will hold a hearing to determine whether the ABC will face penalties for its unlawful conduct. We will ask the court for a significant penalty in order to deter the ABC from repeating its illegal conduct in the future."

In a statement acknowledging the findings, ABC MD Hugh Marks expressed regret that the matter was not resolved before reaching court proceedings.

"Regardless of the outcome today, it’s clear the matter was not handled in line with our values and expectations. We also let down our staff and audiences, and this failure has caused understandable concern among the public and inside the organisation," he said. "The values of the ABC must be reflected in how we work. In this case the judge found the correct processes weren’t followed and, consequently, errors were made. We regret how the decision to remove Ms Lattouf from air was handled and the distress occasioned her. We extend our sincere apologies to Ms Lattouf and wish her well in her future endeavours."

Concerns have been raised regarding the ABC's independence, integrity, and handling of race and political views. Marks addressed these concerns, stating, "This matter has caused concerns to be expressed about the ABC’s independence and integrity, which are critical to the great trust the Australian public places in us. Any undue influence or pressure on ABC management or any of its employees must always be guarded against."

The ABC has committed to fostering diversity and inclusion, with Marks emphasising, "I wish to emphasise the ABC’s absolute commitment to fostering diversity and inclusion at all levels of the organisation, to addressing racism and discrimination of all kinds, and to accurate and impartial journalism."

In response to confusion over the Personal Use of Social Media Guidelines, the ABC plans to replace them with new Public Comment Guidelines. "Due to confusion expressed about the Personal Use of Social Media Guidelines, which was canvassed during the case, these have been reviewed and will be replaced with new Public Comment Guidelines. We will talk more this about in coming weeks," Marks stated.

Bornstein concluded, "It has been a privilege to represent Antoinette Lattouf in this important case about corporate cancel culture."