ENERGY Australia's managing director denies he promoted a culture of sexual harassment at the company, saying he previously enjoyed a very good relationship with a woman who has made claims against the supplier.
Kate Shea claims she was wrongfully sacked from Energy Australia for highlighting a culture "where sexual harassment is condoned".
Ms Shea, 47, has accused the company's managing director Richard McIndoe of commenting on the weight and appearance of employees and joking about pornography in the workplace.
Mr McIndoe denied the claims in the Federal Court, saying the only time he commented on a staff member's appearance was to request that one woman wore less revealing clothes into the office.
Ms Shea also alleges a human resources manager had to follow Mr McIndoe around the 2010 company Christmas party to ensure he didn't sexually harass staff.
But Mr McIndoe said he was released from hospital with 120 stitches just days before that party after having a tumour removed from his neck.
"I was in a great deal of pain and quite frail," he told the court on Monday.
Mr McIndoe said he and Ms Shea had shared a good personal and professional relationship before she made the accusations in mid 2011.
He said the pair often went out for lunch and drinks and had dined together with their partners.
Ms Shea has alleged in court that Energy Australia's chief financial officer Kevin Holmes, who has since left the company, touched her inappropriately on a work trip to Hong Kong in February 2010.
The former corporate affairs director is claiming compensation for loss of earnings and reinstatement to her role.
Energy Australia says Ms Shea lost her job in February 2012 as part of a necessary restructure.
The trial continues.
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