But his lawyer indicated the pianist, currently in the United Kingdom, would need time to consider the decision.
"He's obviously very disappointed by the outcome," Michael Bradley told reporters outside court.
The international concert pianist claimed he was unfairly dismissed by the orchestra after expressing his political beliefs at a recital on August 11, 2024.
Before playing a composition piece dedicated to Gazan journalists, Gillham told the audience Israel had deliberately targeted some journalists to prevent the reporting of war crimes.
Gillham was sacked the next day, with the MSO apologising to the recital attendees for his comments and notifying that he would no longer perform at a concert on August 15.
The MSO then tried to reinstate Gillham, advising his representatives on August 14 he could perform the next day if he agreed not to make any physical or verbal statement from the stage.
Gillham refused the request and the orchestra on August 15 released a public statement, confirming he would not be performing due to "safety concerns".
Judge Hill found the MSO did not take action against Gillham because of his political beliefs, rather it was protecting its business interests and reputation.
"I find that the MSO would have taken the same actions if Mr Gillham had expressed a political belief in support of Israel," the judge said.
"Or if Mr Gillham had made statements on any other topic that had the same impact or anticipated impact on the MSO's business and reputation that Mr Gillham's actual remarks had."
The orchestra had a policy of not supporting either side of the Gaza conflict and there was a custom of performers not making statements about sensitive political issues, Judge Hill said.
The judge also determined Gillham, as an independent contractor, did not have a workplace right under the terms of the Fair Work Act.
Gillham had claimed Victoria's Equal Opportunity Act was a workplace law and prohibited employers from treating workers unfavourably because of their political beliefs.
But Judge Hill ruled the Equal Opportunity Act was not workplace law and Gillham did not have a relevant workplace right.
The judge determined all of Gillham's claims against the orchestra should fail.
He encouraged the parties to discuss a plan for costs but indicated he was not minded to grant the MSO the costs of the trial.
The MSO welcomed the ruling and maintained Gillham should have sought the orchestra's authorisation before making statements about the Gaza conflict.
"We would like to acknowledge the dedication and professionalism of our musicians and staff who have continued to deliver brilliant musical experiences, despite the disruption and distraction that came with defending these legal proceedings," MSO chair Edgar Myer said in a statement.
"We hope that we can now put this matter behind us and focus on our music."
The orchestra received one written and two verbal complaints after the August 11 recital, followed by 487 complaints about the cancellation decision, the court was told during the trial.
Israel launched its offensive in Gaza, which has killed more than 72,000 Palestinians, after Hamas fighters stormed an Israeli music festival on October 7, 2023, and killed more than 1200 people.
As of December 2025, more than 260 journalists have been killed in the conflict, according to the United Nations.