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An investigation into an employee's alleged "improper behaviour" did not align with the employer's own respectful workplace policy and was therefore "inadequate, flawed and unfair", a commission has ruled.

In psychological injury proceedings, NSW Personal Injury Commission Member John Turner highlighted the employer's numerous investigation failings, which began shortly after complaints were made and continued through to a meeting about the outcome.

The Bunnings employee conceded her psychological injury was caused by the employer's actions with respect to discipline, following a fire evacuation in July last year. But she argued its actions weren't reasonable.

The Commission heard that in an intranet post after the incident, a manager said "unnecessary commotion" at the evacuation point was "disappointing", and noted "most" workers were helpful while "a handful" were not...