Racial abuse alleged by Melb Toyota worker

A Melbourne car salesman who kept a diary of racial abuse allegedly hurled at him by managers and co-workers is suing a Toyota dealership.

The Sri Lankan-born man is seeking damages in the Federal Court over the repeated verbal and physical abuse he says he was subjected to while working at South Melbourne Toyota.

His lawyers on Wednesday claimed management and fellow employees called the man a "black c***", "BC", "a f***ing curry muncher" and "curry" and also sprayed air freshener around him as he ate lunch.

The salesman was allegedly belittled in front of customers, unfairly denied time off in lieu and overheard management and co-workers making racist remarks about customers of sub-continent origin, court documents show.

Law firm Maurice Blackburn isn't yet identifying its client - who's been on sick leave for six months - to protect his mental health.

South Melbourne Toyota, one of 13 dealerships across Melbourne in the Jefferson Automotive Group, declined to comment on the allegations.

"No comment at all, as it's all with the lawyers," a spokesman told AAP on Wednesday.

According to Maurice Blackburn, the racism allegations were investigated by a WorkSafe Victoria insurer, which rejected a workers' compensation claim on the basis management had acted reasonably.

Key to the Federal Court case will be a diary kept by the client that allegedly details the racist abuse and mistreatment.

Maurice Blackburn's Josh Bornstein believes the insurer's investigation was "deeply flawed".

"The insurance company has not seen our client's diary or spoken to relevant witnesses to the racist abuse," the lawyer said in a statement.

Toyota Australia has been contacted for comment.