Kyle Sandilands Settles Wrongful Termination Dispute for $12 Million

Kyle Sandilands has come out of a very public wrongful termination dispute $12 million richer — but the real winner could be his former employer.

In an ASX announcement on Wednesday, ARN Media agreed to pay the shock jock $12.09 million, with $3 million payable as soon as next month.

That figure is well under the $85 million he was seeking in the legal dispute over his abrupt sacking following an on-air row with his radio co-host Jackie "O" Henderson in February.

Economist Conrad Liveris initially predicted Sandilands would be paid out a sum between $10 million and $30 million before it went to the Federal Court.

He said Wednesday's settlement meant ARN Media was walking away with an "exceptionally good deal".

"They are walking away, with a lot of control here," he said.

As part of the settlement, ARN Media will advertise Sandilands's new, independent media project on its platforms which will earn him $1.5 million over the next three years.

Sandilands has also agreed to a revenue share arrangement, providing the media company with 19.9 per cent of the revenue from his new venture.

However, Sandilands is barred from engaging with the network's direct competitors for the next nine months.

He predicted Henderson's settlement, if she chose not to pursue legal proceedings, could reach the $20 million mark.

"The main issue for Jackie is the way it all blew up, it was inherently more emotional, there was that targeting of her that we all saw, and so there is a penalty that needs to be paid," Mr Liveris said.

Legal proceedings that Henderson lodged against the former employer in the Federal Court remain ongoing.

Henderson is claiming at least $82 million in compensation for wrongful termination.

Her lawyers previously said she was left "psychologically unwell" from Sandilands's "ongoing bullying", and she could no longer work with him.

What will this mean for Henderson?

Employment special counsel for BlackBay Lawyers Michael Yeates said Henderson's case would be a harder fought battle for ARN Media.

"If Jackie feels that she's got a strong claim, she could probably hold out a little bit longer, or be a little more involved in settling at a higher level," he said.

Mr Yeates said the outcome was dependant on whether the parties could meet a common ground and reach a resolution that both could live with, but her case differed in complexity to Sandilands's.

He says Henderson's case is interesting in terms of the network's positive duty — the action an employer undertakes to stamp out conduct that creates a hostile workplace environment.

"Whether they've been put on notice of an unsafe working environment and whether they've complied with a positive duty under the health and safety laws, that raises the question around what the network ought to have done and that's going to create a lot of interest as that matter progresses," Mr Yeates said.