A sacked executive from Energy Australia denies she fabricated claims of a culture of sexual harassment at the company as a revenge plot against her former boss.

Kate Shea claims she was wrongfully sacked from Energy Australia for highlighting a culture "where sexual harassment is condoned", after alleging she was inappropriately touched by a company executive.

Ms Shea, 47, has also told the Federal Court that managing director Richard McIndoe harassed staff and joked about pornography in the workplace.

But Energy Australia lawyer Justin Bourke SC said Ms Shea's allegations had been driven by a desire to destroy Mr McIndoe.

"You were determined to seek revenge on Richard McIndoe and force him out of the business," he told Ms Shea in court on Wednesday.

"That's not true," she replied.

Mr Bourke rejected Ms Shea's accusation that a human resources employee trailed Mr McIndoe at a company Christmas party to ensure he did not harass staff.

Mr McIndoe was sporting about 100 stitches in his neck after having a tumour removed and was released from hospital a week before the party, he said.

"Even if he wanted to he would not have been in the condition to engage in sexual misconduct," Mr Bourke said.

Ms Shea, the former corporate affairs director, is claiming compensation for loss of earnings and reinstatement in her role.

Energy Australia says Ms Shea lost her job in February 2012 as part of a necessary restructure.

Ms Shea has alleged in court that Energy Australia's chief financial officer Kevin Holmes, who has since left the company, touched her inappropriately on a work trip to Hong Kong in February 2010.

She told the court Mr Holmes had asked another employee whether she was happy in her marriage before the alleged incident.

The trial continues.