The ex-employee has initiated court action and is seeking $120,000 in compensation plus penalties from the owners of Western United.

He alleges he faced persistent bullying from Rudan, which made him mentally ill.

The former team manager left his post at the club in Ferbruary this year.

He has lodged a claim of unlawful dismissal in the Victoria's Federal Circuit Court.

Western United chief executive Chris Pehlivanis told FTBL in a statement: "The club vehemently denies the claim and in particular notes that the person resigned from his employment.  
"The club stands behind our head coach Mark Rudan and since the matter is currently before the courts, the club will not be making any further comment at this stage."

Rudan was appointed coach of Western United for their inaugural A-Legue season in May last year.

The 44-year-old left Wellington Phoenix to join the new Victorian outfit.