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Home / Business / Companies / Aged care

Retirement Commissioner investigation handled 'shockingly', reputation expert

Tamsyn Parker
By Tamsyn Parker
Business Editor·NZ Herald·
27 May, 2019 03:10 AM5 mins to read

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Retirement Commissioner Diane Maxwell has been cleared of bullying allegations. Photo/ Supplied

Retirement Commissioner Diane Maxwell has been cleared of bullying allegations. Photo/ Supplied

A reputation expert has slammed the Government's handling of the costly investigation into Retirement Commissioner Diane Maxwell over the time it took and public nature of it.

But employment experts say it was handled appropriately and the six months it took to investigate is not uncommon.

Maxwell was cleared of bullying allegations last Wednesday and was back on the job working on Thursday after being forced to take gardening leave for six months.

The allegations surfaced at the end of November and on December 12 the State Services Commission appointed Queen's Counsel Maria Dew to investigate on the request of Commerce Minister Kris Faafoi.

The report was due by February 28 but was delayed until the first week of April.

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A spokesman for the State Services Commission told the Herald the report cost around $118,000.

Commerce Minister Kris Faafoi. Photo / Mark Mitchell
Commerce Minister Kris Faafoi. Photo / Mark Mitchell

Faafoi had the report in his hands by April 18 but sat on it while he sought advice finally releasing it on May 22.

READ MORE:
• Are you being bullied at work?

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Deborah Pead, who runs her own public relations agency, said of the investigation: "I think it has been shockingly handled. I doubt you would get away with that in private practice."

Pead said it was "appalling" that the allegations had been made public before the outcome of the investigation was known and questioned why it had taken so long.

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"Why does it take six months? It should been done in days with minimum disruption. That would have an impact on anyone's career."

Faafoi said the delays had been caused by the Queen's Counsel asking for more time to complete the review and it took him a month to work through the response which included discussions with the Retirement Commissioner.

"The process was thorough as it should have been given the nature of the allegations."

Deborah Pead from Pead PR. Photo / Greg Bowker
Deborah Pead from Pead PR. Photo / Greg Bowker

Pead said Maxwell's reputation would have been damaged while the complaints were being investigated but she believed it wouldn't last.

"I don't believe the negative attitudes will prevail."

Pead said Maxwell had acknowledged her communication style needed to change.

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"Her best way is to get back into work and do a good job. Her work will speak for herself."
"Her work will help restore her name."

But the challenge for Maxwell is that she will also be out of a job by the end of June with her contract set to end.

Faafoi announced in November that he would not be reappointing Maxwell to the job after she had already had two terms.

Pead said that made it a challenge. "That is definitely a challenge having a limited time to demonstrate value."

She said Maxwell did have a good reputation for raising the profile of retirement issues.

"The work she did prior to the accusations was exemplary. One hopes this will be seen for what it was - a false accusation from people that didn't take well to her management style. I am hopeful for her this will blow over.

"I think it is grossly unfair what has happened to her - to be targeted without any substance."

John McGill, chief executive of Strategic Pay, a remuneration consultancy firm which deals with top executives, said the six-month timeframe for the investigation was undesirable and would be seen as unacceptable by some but it was not surprising.

"Sometimes these investigations do take an inordinate amount of time to do properly.

"It makes you want to tear your hair out but it is the nature of these inquiries that it takes longer than you think."

John McGill of Strategic Pay. Photo / Supplied
John McGill of Strategic Pay. Photo / Supplied

McGill said despite the positive outcome for Maxwell it could dent her prospects for her next job.

"It could make them [employers] more cautious."

But he believed it would only be short-term.

"I would be optimistic if I was her."

Catherine Stewart, a specialist employment lawyer, said in her view the Government had handled the situation appropriately by appointing an independent employment lawyer to investigate and report on the concerns.

"This removes any perception of bias that the employer might have in conducting an investigation of its own accord and is increasingly becoming a preferred process for private employers in bullying situations as well, particularly when there are multiple witnesses and the employer is a large organisation."

Stewart said it was not normal for an employee to be awarded compensation when they are cleared of bullying allegations, unless they can establish that they have some legitimate claim arising from the process or outcome of the investigation.

"Ms Maxwell would probably need to raise a personal grievance to claim compensation and then compensation would not be awarded automatically but would be based on her being able to prove some unjustified action by her employer."

Asked if the Government would be compensating Maxwell for legal costs and potential reputation damage Faafoi said any compensation would be an issue for the Retirement Commissioner to take up with the commission's insurer.

"As far as I am aware, no request for compensation has been made."

Diane Maxwell. Photo / Sarah Ivey
Diane Maxwell. Photo / Sarah Ivey

Maxwell personally funded her defence and is now looking to recoup those costs.

She is in discussions with the Ministry of Business, Innovation and Employment and is waiting to hear back.

She has yet to decide whether to pursue any further action.

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