The CEO of an Australian generative AI healthcare startup has lost an unfair dismissal case after the Fair Work Commission ruled he was not an employee of the company.

Justin Spangaro launched the action against NeuraGPT in April last year, alleging he had been unfairly dismissed from his role as chief executive officer.

NeuraGPT argued that Spangaro was an independent contractor, not an employee, meaning he was not eligible to bring an unfair dismissal claim.

The Melbourne-based startup says it is on a mission to "revolutionise healthcare and solve critical challenges through generative AI technologies".

The company claims its technology can "enhance clinical and operational efficiencies, improve patient care and deliver transformative insights and therapies".

Spangaro told the FWC he had 40 years of international tech industry experience with “extensive networks in AI and healthcare”, and that he was previously a CEO of venture-funded medical research startup Carbon Cybernetics, along with being an entrepreneur-in-residence at CSIRO.

The contract in question

Spangaro signed a contract with NeuraGPT in mid-2023.

This was a “simple independent contractor agreement” between the company and corporate entity that Spangaro was a director – Spangaro Systems, the FWC heard.

When he questioned how the CEO of a company could be an independent contractor, Spangaro was told that “nothing stops” this happening and that “under Australian law, it is possible for a contractor to act as CEO”.

When he started at the company, NeuraGPT had no other staff, no customers and no revenue or assets – it was a completely new startup under the Innovative GPT Group umbrella.

Under the contract, Spangaro was paid an annual salary of $250,000 plus GST in monthly instalments for which he invoiced.

From late 2023 to mid-March 2024, Spangaro claimed that he had not been paid these invoices, with more than $73,000 owed to him.

He then sent a default notice to NeuraGPT under the contract in early March 2025 and eventually terminated the contract.

During his time at the startup, Spangaro said that he “presented as CEO” in public forums and worked exclusively full-time for the company.

“To all intents and purposes, I acted effectively and exactly as a CEO-employee would be expected to do and sought and received stakeholder input and guidance from my employer where appropriate,” he told the FWC.

At the commission hearing Spangaro claimed the contract was a “sham to avoid obligations”.

The response

In response, the startup argued that it was not “rare” for startups to have a contractor as a CEO.

Fair Work Commissioner Mark Perica considered the contract and the structure of Spangaro’s work to determine whether he was an employee or not.

While finding there were some aspects that pointed to Spangaro being an employee, he was ultimately an independent contractor and could not make an unfair dismissal claim.

The fact Spangaro has 40 years’ experience in the tech industry and holds an MBA weighed into the decision, with Perica saying there were “genuine negotiations” over the contract, and he would have known the relationship was not an employment one.

“[He was] not a callow youth who was handed an independent contract and was instructed to sign it on a take it or leave it basis,” Perica said in his findings.

“He is an experienced businessman with years of executive experience and an MBA. He entered into the contract freely because he ‘wanted the job’.

“He says he would have preferred an employment contract, nevertheless he genuinely agreed to form a relationship of independent contract.

“Given his reliance on the terms of the contract in the manner of its termination, he cannot now disavow its terms.

“Looking at the real substance, practical reality and true nature of the relationship between Mr Spangaro and NeuraGPT, he was not an employee for the purpose of the Act.”

Spangaro’s case was thrown out by the FWC.