Former Monash University lecturer Alan Boulton, 74, faced Melbourne Magistrates Court on Thursday after being charged with three child abuse material offences.
Police allege he "inadvertently displayed" inappropriate images during a university lecture on February 5.
The incident was reported to police, who commenced an investigation and interviewed him at his Middle Park home a week later.
Electronic devices were seized and police also travelled to NSW where they searched a second property in Sydney on February 13 and took more devices.
Boulton was charged on July 31 with three counts of possessing child abuse material, including one commonwealth offence.
He was placed on bail at the court on Thursday, where he appeared via video link wearing a dark-grey suit and tie.
Prosecutors tried to impose a bail condition preventing Boulton from travelling overseas and surrender his passport.
However, his lawyer Holly Baxter asked for him to be permitted to go to Europe on a "business trip".
She said Boulton had provided prosecutors with details on his flights and itinerary on July 23.
"No issue was taken with that, on that basis he booked the trip," Ms Baxter told the court
"A serious amount of money has been spent on that trip."
The defence lawyer said Boulton had travelled overseas in May while under investigation and returned home, and he had no criminal history.
Magistrate Brett Sonnet refused the prosecution's attempt to impose travel restrictions, permitting Boulton to visit Europe.
His bail conditions include that he cannot contact prosecution witnesses, is permitted to reside at two residential addresses, and must notify police within 24 hours of a change of address.
Boulton will return to the court on November 7 for a committal mention.
The 74-year-old man is a former Australian Council of Trade Unions lawyer and was appointed deputy president of the Fair Work Commission in 1989.
He became the commission's senior deputy president in 1993, where he served until 2015.
A Monash University spokesperson said the allegations were "very serious" but declined to comment further while the matter was before the courts.
"The safety and wellbeing of our students and staff is our highest priority."
1800 RESPECT (1800 737 732)
National Sexual Abuse and Redress Support Service 1800 211 028
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