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A Perth man has lost his job after referring to a non-binary colleague as “he” instead of “they” during a workplace leadership course in February.

The 63-year-old made the remark in front of a room of people before another staff member corrected him. He apologised to the colleague, who had previously made it clear they wished to be referred to as “they” and wore a pronoun name badge to indicate this preference.

The man was later told by his manager that a formal complaint had been made and that a written apology was required. He refused, arguing that “nobody could be compelled” to call someone “they.”

The worker subsequently took the matter to the Fair Work Commission (FWC), alleging wrongful dismissal. He told the FWC that “if one person had the arbitrary right to use a particular pronoun, then another person had the right not to use it.”

An investigation was launched by his employer in March, after which the man was dismissed. The West Australian reported that the worker reached a confidential settlement with his former employer after being warned he could face social backlash if he pursued the case in open court.

Under the Sex Discrimination Act, in force since August 1, 2013, it is unlawful to treat someone unfairly based on their gender identity, intersex status, sexual orientation, or marital or relationship status, including same-sex de facto relationships.

The Australian Bureau of Statistics estimates that 0.9 per cent of Australians aged 16 and over are transgender or gender diverse, which includes non-binary individuals.