The Australian global was sacked after a social media post in which he said "hell awaits" gay people. "It does not represent the values of the sport and is disrespectful to members of the Rugby community".
"At its core, this is an issue of the responsibilities an employee owes to their employer and the commitments they make to their employer to abide by their employer's policies and procedures and adhere to their employer's values", said Castle.
Wallabies coach Michael Cheika said earlier that Folau's "disrespectful" comments would now make it impossible to pick the superstar for Australia at this year's Rugby World Cup.
Folau has run afoul of the league and LGBTQ campaigners in the past for his defense of Biblical teachings on sexuality and marriage.
Many current players though took to social media to speak out against his comments.
Coach Michael Cheika said on Monday he would not have been able to select fullback Israel Folau for the Wallabies after his latest "disrespectful" social media posts attacking gay people.
Folau, who broke the record for Super Rugby tries earlier this month, also tweeted a screenshot of the news that Tasmania last week became the first Australian jurisdiction to make gender optional on birth certificates.
A devout Christian, Folau had previously been warned but had not been sanctioned for similar comments. "But you were washed, you were sanctified, you were justified in the name of the Lord Jesus Christ and by the Spirit of our God". During the service, references were made to religious persecution in Folau's case.
"It's obviously a decision that's in the process right now but I believe in a God that's in control of all things", Folau said.
"Whatever His will is, whether that's to continue playing or not, I'm more than happy to do what He wants me to do", he told the Herald. "But my faith in Jesus Christ is what comes first".
A year ago Folau was warned for making homophobic comments on social media but escaped disciplinary action.
He then added: 'I'll stand on what the Bible says.
Anyone who knows Billy will tell you he's not a malicious person and he has said himself that he lives "with kindness and love towards ALL people".
At that point, I think it does become an issue because everyone is entitled to live their life how they see fit and I don't think anyone has the right to impose their beliefs on other people.
"Obviously I love playing footy", he assured, "and if it goes down that path I'll definitely miss it".
Castle said Folau had been unapologetic about the posts and his stance when she met with him last Friday.
Ms Castle said it was "very disappointing" to see how Folau had behaved following the controversy of last year's tweets and RA's subsequent talks with the dual global.
Cheika said Folau, who is facing the sack by Rugby Australia for saying "Hell awaits" homosexuals, was unlikely to play for him again in an Australia shirt.
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