Fortescue stands down the executive being investigated by external law firm for alleged sexual harassment

Fortescue has changed its mind by standing down the unnamed executive at the centre of a sexual harassment investigation.

The iron ore giant on Tuesday said it would suspend the executive from work, despite last week defending a decision to keep him on.

Fortescue has brought in law firm MinterEllison to conduct an “independent, external investigation into allegations concerning an employee”, which emerged earlier this month.

“These allegations are being treated extremely seriously,” a Fortescue spokeswoman said.

“As the investigation has progressed, Fortescue has continued to take external legal and governance advice. It has been decided that the employee who is the subject of the allegations will not undertake any work for Fortescue while the investigation continues.

“The investigation is ongoing and no findings have been made.”

Last week, Fortescue’s head of growth and energy Gus Pichot said the company was “quite confident we’re following the proper process “ by not suspending the executive from work.

“We have taken extensive external legal and governance advice to make the decision we’re making,” Mr Pichot said at the time.

On Tuesday, Mr Pichot and Fortescue metals chief executive Dino Otranto sent an email to staff addressing the situation.

“This is a difficult and sensitive time. It is important that the investigation proceeds through a robust and fair process. We are therefore limited in what we can discuss or share while that is happening,” the email stated.

Separately, Fortescue is facing a class action lawsuit centred on sexual harassment at the company’s Pilbara iron ore mines.

The class action was filed by Brisbane-based law firm JGA Saddler in June.

JGA said thousands of women could be eligible to join the class action, which alleges gender-based harassment, systemic discrimination, and a toxic workplace culture at Fortescue mine sites.

More to come . . .