Hadley settles with Palmer over alleged bullying

2GB's Ray Hadley has settled for an undisclosed sum to resolve allegations he bullied the stations digital content manager, Richard Palmer.

"I can confirm that the matter is settled to my client's satisfaction," said John Laxon, lawyer for Palmer.

It is believed that on February 7 last year Hadley requested Palmer come to his office to explain why a podcast had not yet been uploaded. Prior to the exchange, Palmer activated the record function on his iPhone, and secretly recorded the conversation as he was concerned about the effect on his employment.

The recording allegedly shows extraordinary abuse of a graphic, personal and aggressive nature from Hadley to Palmer.

Hadley was also facing allegations of false imprisonment as a work colleague 'guarded' the door to Hadley's office whilst he allegedly verbally abused Palmer.

After hearing the recording, Macquarie's Managing Director Rob Loewenthal was apparently horrified and subsequently suspended Hadley. This suspension was then over-ruled by Macquarie's majority shareholder John Singleton, who reinstated Hadley to his morning show the following day.

Hadley subsequently fronted a staff meeting and in an emotional address apologised for his behaviour, promising to change his approach.

Richard Palmer has not attended the 2GB offices since February 14, 2013.