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Jackie 'O' Henderson has been advised to take legal action against ARN amid the fallout from her departure from The Kyle and Jackie O Show.
Celebrity agent Max Markson suggested that Henderson, 51, could argue that she has not breached her contract.
'I would be encouraging her to sue,' Markson told The Daily Telegraph.
Markson warned, however, that Henderson would have to prove that she was not provided with a 'safe workplace' in order to mount legal action.
Prominent employment lawyer Chris Gianatti, from KHQ Lawyers, agreed that at this stage, lawyers should be involved in negotiations.
'You could not help but lawyer up if you were Kyle or Jackie 'O' and ARN is stuck in the middle,' he said.
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Jackie 'O' Henderson (pictured) has been advised to take legal action against ARN amid the fallout from her departure from The Kyle and Jackie O Show
'To try and wrap up a contract like this is going to be very expensive.'
It follows claims that is safeguarding his contract against termination.
The radio titan has 'called in lawyers' and is 'preparing to sue' ARN should his $100 million contract be terminated following the collapse of KIIS FM's The Kyle and Jackie O Show, The Australian reported on Thursday.
Sandilands, 54, is reportedly seeking a payout for the remainder of that contract, on which he has eight years and $88 million remaining.
The shock jock was accused of 'serious misconduct' after his spectacular on-air clash with co-star , .
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Sandilands is said to have been 'caught completely off-guard' by the misconduct allegation as he had been given free rein on the air, with two full-time censors to ensure he is safeguarded.
The radio star will argue that ARN has no justifiable cause to terminate his contract as the network had promised to be fully liable for his on-air comments, the publication reports.
A source tells The Australian that Sandilands would agree to leave his top-rated breakfast program only if he was compensated with, 'the full $100 million he is owed less what he has already been paid'.
Celebrity agent Max Markson suggested that Henderson, 51, could argue that she has not breached her contract
Sandilands, 54, (right) is reportedly seeking a payout for the remainder of that contract, on which he has eight years and $88 million remaining
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Sandilands has been suspended and given 14 days to 'remedy' the breach, or else faces termination.
ARN provided written notice to Sandilands stating that it considers his behaviour during the show on February 20 'an act of serious misconduct which is in breach of ARN's services agreement with Quasar Media'.
The KIIS breakfast show will be
A representative for Kyle Sandilands declined to comment when approached by Daily Mail.
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