Federal MP Clive Palmer has described a former employee suing him for almost $5 million as a “dog’s body” in his business.

Bill Schoch, the former manager of Mr Palmer’s Coolum Resort on the Sunshine Coast, is suing the mining magnate and two of his companies for $4.6 million in damages and unpaid wages.

He worked for Mr Palmer from 2011 until his job was terminated in December 2013, the Supreme Court in Brisbane has heard.

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Mr Palmer told the court there was never an arrangement made of paying Mr Schoch $1 million a year, which is what Mr Schoch is claiming.

“We offered him a salary of $100,000 a year plus a description of a bonus,” Mr Palmer told the court.

“He indicted he was happy with that to start with.

“I ensure things are put in writing.”

Mr Palmer said he only took on Mr Schoch out of a feeling of moral obligation, having known him since 1978.

“I understood he was fairly desperate for employment, he had lost his ability to audit companies,” Mr Palmer said.

“It was public knowledge he’d been petitioned for bankruptcy in 2006.

“He and his wife were good enough to come to my wife’s funeral when she died and I felt I had a moral obligation to try to see if I could get him going again.”

ABC