Justice Minister Andrew Little has ordered a review of the Human Rights Commission because of the way it handled a sexual harassment complaint against one of its employees.

Earlier this month Stuff reported a young American woman cut short her internment at the commission after she was groped by the organisation's chief financial officer at a work party.

The commission investigated a sexual harassment complaint against Kyle Stutter, which resulted in disciplinary action.

However, three months on he was still employed in the same position.

"It is vital that New Zealanders have trust and confidence in the Human Rights Commission as New Zealand's authority for dealing with complaints about sexual harassment," Mr Little said on Wednesday.

"I am concerned by recent reported events. An independent inquiry is necessary to look at the commission's processes and culture."

Little has appointed retired Employment Court Judge Coral Shaw to lead the review.

The commission said it supported the review.

Chief Commissioner David Rutherford said the commission aimed to be an examplar in the prevention of sexual harassment at work, and in the management and resolution of complaints of sexual harassment.

"We look forward to addressing any recommendations of the review," he said.

- NZ Newswire