Wally Haumaha will not resign and will return to full duties as Deputy Police Commissioner in the New Year under a professional development plan that Police Commissioner Mike Bush refuses to detail.
His return follows months of working remotely while under investigation and the release today of an Independent Police Conduct Authority report, which noted Haumaha had at times belittled, humiliated and intimidated staff in a way that was inappropriate and unprofessional.
But it found that Haumaha's behaviour - while heading a project across police, corrections and justice - fell short of the workplace definition of bullying, which required a persistent pattern of behaviour.
Haumaha can only be fired on advice by the Prime Minister to the Governor-General, and Jacinda Ardern took legal advice today that found Haumaha had not acted poorly enough to be removed from office.
But she said the behaviour was "very disappointing" and made it clear to the Police Minister that she expected better.
She said it was up to Haumaha if he wanted to resign, but Police Commissioner Bush said that Haumaha had not signalled any intention to resign.
Bush, who spoke with Haumaha today, said he would put in place a professional development plan to monitor Haumaha.
But he would not disclose what that plan would entail, or say whether Haumaha would attend a course on appropriate workplace behaviour.
"He'll be returning to work in the New Year to work from the office with his team to carry on the work he and his team have been doing for some time.
"I will put a plan in place and closely monitor with DC Haumaha to ensure the public can have trust and confidence in the entire organisation, including the leadership.
"What that plan entails will be between DC Haumaha and myself."
Bush said he accepted the IPCA report, but would not say if the behaviour from Haumaha was disappointing.
"Those issues that have been raised will absolutely be taken seriously by me, and will be worked through by myself and DC Haumaha."
Asked if Haumaha had apologised for behaviour outlined in the report, Bush said: "We didn't get into those details. We are talking about the future."
National's police spokesman Chris Bishop said if the Prime Minister won't sack Haumaha, he should resign.
"It's just not tenable that the second top police person in the country can exhibit that sort of behaviour and stay in the job. What sort of message does that send to every police officer around the country, and indeed New Zealanders, when someone can behave like that and stay in the job?
"We've been contacted in the last few hours in the National Party by serving police officers around the country who are horrified at what has gone on, and they do not think he should stay on.
"The Prime Minister should sack him, or he should resign. It doesn't matter how we get there, but he needs to be removed from his job."
Police Minister Stuart Nash said he had written to Bush and asked how he will respond to the IPCA report, and how he will manage inter-agency work in the future.
"No police officer, at any level in the organisation, should act improperly or unprofessionally and I am disappointed to hear the IPCA found it happened in this case."
Nash said he wanted to know how Bush will manage future inter-agency work with a clear project management framework.
Bush said he expected every such project to have such a framework.