Teal MP Monique Ryan and her chief of staff have been unable to resolve an unfair dismissal claim following "robust" private negotiations, a court has been told.
Political staffer Sally Rugg appeared with her lawyers at the Federal Court in Melbourne on Friday for a second urgent hearing to keep her job, after she filed a suit against Dr Ryan.
Ms Rugg and the MP sat at different ends of the courtroom and did not acknowledge each other during the brief hearing.