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A senior executive who muttered "offensive" words during an out-of-hours incident has won claims for adverse action and breach of contract, with the Federal Circuit Court chastising his employer for its incorrect allegations and "misleading" investigation.

In his 324-page decision, Judge Nicholas Manousaridis also found the employer's dismissal letter wasn't composed in "good faith"; it contained conclusions that were "untethered from the evidence" and were "manifestly destitute of particulars".

In July 2020, Laing O'Rourke emailed the letter to the commercial leader, informing him he was being summarily dismissed for serious misconduct.

The letter said the executive had breached the employer's code of conduct during an incident earlier that month, creating an "imminent and serious risk" to the employer's reputation, and had lied to the human capital and industrial relations lead during a subsequent workplace investigation...