The Wiggles have driven a big red car to mediation with their former boss after rubbishing his claims he was illegally fired for complaining about the group hiring friends and family.

Luke O’Neill has launched legal action against the group, blue Wiggle Anthony Field and its general counsel Matthew Salgo in the Federal Court, seeking damages and penalties.

He says he was dismissed without a reasonable basis by the famous children’s entertainers in May after complaining about the hiring of Field’s friends and family members.

But The Wiggles allege O’Neill was fired because his “overall performance was not satisfactory” and trust in him had been lost.

“The situation was not regarded as sustainable or capable of remedy,” their written defence says.

O’Neill claims Field – the sole original Wiggle still performing in the group – questioned his competence and “undermined him” in front of more than a dozen staff at a meeting in February.

But the group alleges he was advised by Field that he was too involved in the creative development process, given his commercial role, and hadn’t been consulting with Field – who acts as creative director – about creative decisions.

O’Neill claims Field tried to reduce his roles and responsibilities, including excluding him from meetings with retailer Kmart about Wiggles toys.

In return, The Wiggles claim O’Neill expressed no interest in going to the meeting and told a colleague that “he did not need to attend”.

The group similarly contested O’Neill’s claim he was not consulted about a decision to remove a tour promoter, citing an email chain in which he appears to agree with the move.

O’Neill says he was owed more than the $86,266 bonus he received in July and is seeking to recoup the full bonus amount, as well as compensation and penalties.

But The Wiggles maintain they were not required to pay ONeill “any bonus either whilst an employee … or on the termination of [his] employment”.

In the defence filed in the Federal Court, the group categorically denies O’Neill’s allegations and contend large swathes of his claim should be struck out.

If Wednesday’s mediation is unsuccessful, the legal fight is expected to return to court in February to set a date for a contested hearing.

O’Neill was appointed as the first chief executive of The Wiggles in January 2024.

He says he was tasked with implementing strategies to boost the group’s revenue, maintain its budget and oversee hiring decisions.

The Wiggles formed in 1991 and are among Australia’s top-earning and most widely beloved entertainment groups. They have won multiple ARIA awards and were inducted into its hall of fame in 2011.

In 2022 they were recognised for outstanding services to Australian music at the APRA awards.

-AAP