The former CEO of the Wiggles, Luke O’Neill, has initiated legal proceedings against Wiggles Holdings Pty Ltd, alleging that he was denied a promised bonus and that the company breached the Fair Work Act. The case, which names blue Wiggle Anthony Field and general counsel Matthew Salgo, was filed in federal court, with O’Neill claiming he was undermined and excluded from key business decisions.
According to court documents obtained by Guardian Australia, O’Neill served as a consultant for the children’s entertainment group from April 1, 2023, until January 2024. He officially took on the role of CEO on January 8, 2024, under a contract dated March 5, 2024. The contract outlined his responsibilities, which included developing strategies to boost revenue, managing budgets, overseeing hiring, and reviewing financials.
Allegations of Undermining and Exclusion
O’Neill’s claims detail a series of incidents where he felt his authority was undermined by Field. In May or June 2024, O’Neill raised concerns about Field’s decision to implement a special bonus scheme for a friend and a family member, which deviated from the standard employee bonus structure. He also objected to Field’s spending decisions, including the hiring of additional staff for shows in Canberra and the production “Tree of Wisdom,” which he argued led to unnecessary expenses.
In February 2025, tensions escalated when Field allegedly questioned O’Neill’s competence during a meeting with approximately 13 staff members. O’Neill claims that in April 2025, he was excluded from a critical meeting with Kmart concerning the sale of Wiggles-branded toys, further sidelining his role in the company.
Dispute Over Bonus Payments
The former CEO’s lawsuit also centers on a disputed bonus payment. O’Neill contends that he was promised an annual bonus of 5% and an exit bonus of 7% based on the Wiggles’ earnings before interest, taxes, depreciation, and amortization (EBITDA). Despite a reported increase in the Wiggles’ business from $2 million in FY23 to a forecasted $6.5 to $7 million for FY25, O’Neill alleges his bonus was significantly reduced due to budget overruns he attributes to Field’s conduct.
“In July 2025, O’Neill received a bonus of $86,266, which he claims was less than the amount owed.”
O’Neill states that his performance was acknowledged positively by the Wiggles’ directors, who suggested a salary increase post-July 2025. However, his employment was terminated on May 28, 2025, a move he argues was an adverse action without reasonable basis under the Fair Work Act.
Legal Proceedings and Industry Reactions
The case is set to be heard by Justice Michael Lee, with a first case management hearing scheduled for September 8. As of now, the Wiggles, Field, and Salgo have not filed a defense.
Industry experts suggest that this legal battle could have broader implications for employment practices within the entertainment sector, particularly concerning executive compensation and corporate governance. The case underscores the complexities of managing creative enterprises where personal relationships can intersect with business decisions.
“The outcome of this case could set a precedent for how similar disputes are handled in the future,” said a legal analyst familiar with corporate litigation.
As the case unfolds, stakeholders in the children’s entertainment industry will be watching closely, given the Wiggles’ prominent position in the market. The proceedings may prompt other companies to re-evaluate their employment contracts and bonus schemes to avoid similar disputes.
The Wiggles, known for their colorful performances and educational content, have been a staple in children’s entertainment for decades. This legal challenge, however, casts a spotlight on the internal dynamics of the group and the challenges of maintaining harmony in a high-profile creative business.
