Rugby star Israel Folau has begun legal action against his former employers Rugby Australia and the NSW Waratahs for unfair dismissal.

The decision comes after the former Wallaby and Rugby Australia failed to reach an agreement at a mediation hearing at the Fair Work Commission on June 28th.

Rugby Australia terminated Folau's multimillion dollar contract over a social media post in which he paraphrased a Bible passage, saying "drunks, homosexuals, adulterers, liars, fornicators, thieves, atheists and idolaters" would go to hell unless they repented.

Folau argues he was unfairly dismissed on religious grounds.

[Source:TVNZ]