An Australian space company once hailed as the country’s answer to SpaceX has been ordered to pay its former chief executive more than AU$2.3 million after a Federal Court ruling in her favor.
The court found that former Equatorial Launch Australia (ELA) CEO Carley Scott had been unlawfully denied contractual benefits following the termination of her employment.
Ms Scott, an Order of Australia Medal recipient, had sued ELA for nearly AU$5 million, alleging the company breached her employment contract after she was dismissed. Following a two-week civil trial, the Federal Court accepted her evidence as “credible and truthful” and ruled that her contractual rights must be honored.
ELA and its founder and Group Chief Executive Officer, Michael Jones, had contested the claims, arguing that Ms Scott’s employment contract was invalid and that she had voluntarily exchanged certain entitlements for participation in an employee share scheme.
Mr Jones also filed a counterclaim alleging that Ms Scott altered contract documents for personal benefit, but later withdrew the action.
During the proceedings, Ms Scott alleged she was subjected to repeated workplace mistreatment, including exclusion from meetings, harsh criticism and conduct she described as humiliating and unreasonable. She also raised concerns about alleged racist and sexist remarks made by Mr Jones.
The Federal Court, however, did not make any findings of bullying, racism, sexism or personal misconduct against Mr Jones. The case was ultimately decided on contractual issues rather than the workplace conduct allegations.
Ms Scott joined ELA in 2018 and played a key role in the company’s growth. Under her leadership, the company secured major funding and partnerships, culminating in a historic achievement in 2022 when ELA facilitated NASA’s first commercial rocket launch from a site outside the United States.
The launch took place from the Arnhem Space Centre in the Northern Territory, located on land leased from the Gumatj people of East Arnhem Land. The mission supported scientific research into the structure and evolution of the universe through advanced X-ray observations.
Following the court ruling, Ms Scott’s legal representatives described the judgment as a complete vindication of her position.
“Ms Scott helped transform ELA from a fledgling start-up into a globally recognised space company,” her legal team said. “The court accepted her evidence and confirmed that the contractual commitments made to her must be honoured.”
Meanwhile, ELA has entered voluntary liquidation, and a report has been lodged with the Australian Securities and Investments Commission (ASIC) as investigations into the company’s affairs continue.
The ruling marks a significant chapter in the dispute and comes as Australia’s emerging space industry continues efforts to establish itself as a major player in the global space sector.
