Folau is asking for AUS$14 million compensation after he was sacked over a social media post about sin and hell.
His Instagram post in April listed a number of sins – including adultery and homosexuality warning “hell awaits” those who commit them.
Rugby Australia claim he had committed a high level breach of his contract.
In a video posted on his website before mediation, Folau said: “I understand that not everyone shares my faith and some find it difficult to reconcile with their own beliefs.
“I want to be clear that I only share passages from the Bible as a gesture of love.
“We pray that we might all find redemption and peace in the words of the Lord Jesus Christ as we head to today’s mediation, we also ask that He watches over us, so that both parties might realise the courage to uphold the truth.”
Mediation will now continue on Wednesday.
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