The State’s Deputy Commissioner for Small Business, Frank Zumbo, is embroiled in controversy over a harassment claim by an employee of NSW Federal MP Craig Kelly, who Zumbo advises.

Comcare, the national workplace compensation authority, has awarded compensation to one female employee who claims to have been subject to “bullying, intimidation and stalking” by Zumbo in Liberal MP Kelly’s office.

An article in the Sydney Morning Herald today makes a number of allegations about the consumer law expert and University of New South Wales professor, who it says is a “confidant” of the MP but is not on Kelly’s payroll.

Zumbo’s position as South Australia’s Deputy Commissioner for Small Business is a part-time position (0.2 full-time equivalent) and remuneration is $52,788 per annum. He conducts most of his duties from Sydney where he is based.

In October Comcare accepted the employee’s claims that she suffers an ailment, namely an adjustment disorder with anxious and depressed mood, and her condition was “significantly” contributed to by her employment.

The Comcare decision, seen by InDaily, documents a number of interactions between Zumbo and the employee that adversely affected her, creating perceptions of intimidation, changes to role and inappropriate behaviour with other employees.

Zumbo told InDaily that he is “just an unpaid adviser” to Kelly on low-level policy matters.

He did not confirm or refute the claims made in the Comcare decision or the SMH article.

He said he visited Kelly’s office “from time to time”.

“They’re allegations, it’s a workers’ compensation claim. What else can I say?” he said.

“They are claims made about people’s privacy and matters that people are trying to resolve.

“It’s a family squabble. I’ve known the people involved for many years … sometimes people disagree.”

Comcare rules state employees must demonstrate injury to receive compensation but are not required to prove their employer was at fault.

In the decision, the employee claims Zumbo “is a visitor but attends the office full-time” and she reports that her car was vandalised on three occasions in a secure private car park.

Comcare found there was no evidence that Zumbo was responsible for the vandalism, in part based on evidence supplied by Kelly.

Further evidence documented by Comcare and provided by Kelly on September 19 this year states:

• Changes were made in the office in early 2014 including the addition of new university student part-time staff members;
• The change to duties and new staff members “may” have caused anxiety;
• The staff member’s car was damaged but could be accessed by anyone from 28 residential units above the office; and
• He had not witnessed any inappropriate behaviour from Zumbo to other members of staff.

The decision also states that allegations of harassment and bullying by Zumbo were being separately investigated but further details were not supplied.

The employee has worked for Kelly for more than three years but has been off work since August.

SA Small Business Commissioner John Chapman said Zumbo had his full support regarding the matter and commended him for his “instrumental” work in setting up the SA office.

“He has been very up front with (the claims). I have been aware of that issue in New South Wales, he has talked to me about it and it doesn’t impact on anything he does in South Australia,” Chapman said.

“He is enormously well-regarded in political circles nationally and I don’t see that being impacted upon.”