On Tuesday, Justice John Halley locked in a five-day Federal Court hearing between the Australian basketball great and the Flames to begin on July 3.
Heal's barrister Bilal Rauf said his client could be ready for the fast-tracked hearing, telling the court he had been suspended from his role.
Although he still received pay, there was a catch, Mr Rauf told the court.
"He's contemporaneously now been directed to take all of his annual leave."
Barrister Paul Moorhouse, representing the Sydney Flames, said the team believed it was entitled to direct that Heal use his annual leave during his suspension.
The 52-year-old was suspended as head coach in the Women's National Basketball League in January while an internal investigation into multiple bully complaints was conducted.
Findings of misconduct were made on February 3, with a show cause notice issued to Heal before his possible dismissal. He denies any wrongdoing.
"Effectively, he's out of the workplace. The disciplinary process has been suspended, and that's the position," Mr Rauf said.
On February 15, the Flames promised to the Federal Court that they would not terminate Heal's employment until, at soonest, the final day of the hearing.
In return, Heal has promised to pay the Flames compensation for damages which result from this undertaking.
In the Federal Court lawsuit, Heal has accused the Flames of breaches of employment law and has previously flagged that he will expand this case to include breach of contract.
He is seeking penalties, employee entitlements such as accrued leave, and orders blocking the club from firing him.
Flames owner Paul Smith and president Victoria Denholm are also alleged to have been involved in the breaches.
Mr Moorhouse told Justice Halley that Mr Smith and Ms Denholm had yet to determine whether to use their privilege against self-incrimination, particularly if Heal sought penalties from them as well.
This is the second Federal Court case to have been launched against the Sydney Flames, with former head coach and CEO Karen Dalton accusing the "boys club" of discrimination and gender disparity.
