'No choice': Rugby Australia blasts Israel Folau's money move

Rugby Australia has condemned Israel Folau after the sacked Wallabies superstar began his legal fight for $10 million in damages.

Lawyers for Folau on Thursday lodged an unfair dismissal claim with the Fair Work Commission against his former employers.

Folau will argue that under the Fair Work Act his employment was unlawfully terminated because of his religion.

The 30-year-old dual international is seeking the value of his $5m contract as well as other potential earnings following his participation in this year's Rugby World Cup.

A source close to Folau said the figure was still being considered but could be as much as $10m, which could reportedly bankrupt RA and the NSW Waratahs.

Responding to news of the legal challenge, RA confirmed they would absorb hefty legal costs to ward off an even greater financial blow at the hands of Folau.

“It is important to make clear that Rugby Australia and NSW Rugby did not choose to be in a position where they are forced to divert significant resources to defend the ongoing legal action taken by Israel, but his action leaves the game with no choice," it read.

“As a sport that is proud of the values of inclusion, passion, integrity, discipline, respect and teamwork that underpin our game globally and our Code of Conduct, we will defend those values and the right for all people to feel safe and welcome in our game regardless of their gender, race, background, religion or sexuality."

RA reiterated they had not sacked Folau because of his religious beliefs.

“Rugby Australia and the NSW Rugby Union made the decision to pursue the termination of Israel Folau’s contract because of a serious breach of the Professional Players Code of Conduct,” the statement said.

“This is an issue of an employee and his obligations to his employers within the contract that he signed.

"He was bound by a Code of Conduct for all professional players in Australia that spells out clear guidelines and obligations regarding player behaviour, including respectful use of social media.

“An independent panel, having sat for 22 hours and heard testimony from several witnesses and reviewed over 1000 pages of evidence, determined that Israel’s conduct constituted a high-level breach of the Code of Conduct and ordered termination of his playing contract.

Folau's application stated his employment was terminated because of his religion and included nine reasons to illustrate this.

A member of the Truth of Jesus Christ Church, part of the reasoning was that "as a manifestation of Mr Folau's religion, he is compelled to communicate the word of God and the message contained within the Bible (Biblical Teachings)".

It said that in this context he "communicated certain Biblical Teachings on his personal Instagram account".

RA and the Waratahs demanded he remove the post, and his refusal to do so led to his termination.

with AAP