A contractor for Housing NZ fired for being "over-friendly" to a colleague has been awarded $20,000 for hurt feelings.

Feleti Key was fired in July 2015 for sexual harassment after a female co-worker complained he made her feel nervous.

The man felt so ashamed of losing his job he pretended to go to work to avoid telling his family, according to a Employment Relations Authority (ERA) decision.

In the decision, released in November, the authority found Programmed Facility Management NZ failed to fully investigate the sexual harassment claim against Key.

Key, who was responsible for inspecting Housing NZ properties, travelled with a female colleague to get their work cars serviced.

The pair chatted for about an hour while waiting for the cars before Key drove the woman back to the office.

On the drive back, the woman said Key tried to take the long route home so they could chat for longer.

Key told her "you're tall, the kind of lady I'd like to take out" and repeatedly asked to have coffee with her, she said.

The following day she raised concerns with a manager about Key's behaviour.

"I understand that he is very friendly, however, the discussion was over-friendly and not appropriate at times.

"I was left feeling quite awkward and nervous of what is to follow," her complaint read.

The woman's identity was not revealed in the decision for privacy reasons.

Key denied the claims and said he offered other people coffee. He was actually driving a different route back to the office to avoid traffic, he said.

Programmed Facility Management NZ called Key in for a disciplinary meeting and subsequently fired him for serious misconduct.

Key said he felt so ashamed at being sacked he didn't tell his family and pretended to go to work, according to the ERA decision.

When he did tell his family, he withdrew from charity groups and felt close to having a breakdown.

"He feels extreme embarrassment, shame and humiliation and describes feeling very belittled," ERA authority Rachel Larmer said.

The ERA found the employer failed to properly investigate the allegations of sexually harassment.

Larmer said it was unlikely a fair and full investigation would have resulted in Key's dismissal.

Programmed Facility Management NZ was ordered to pay $20,000 for the humiliation Key suffered.

The employer was also ordered to reimburse him for six months of lost wages.

A Programmed Facility Management NZ spokesman declined to comment on the ERA decision.