The Human Rights Review Tribunal said today Josie Bullock, the Corrections Department probation officer who refused to sit behind men at a Maori function in 2004, suffered "detrimental treatment" because of her sex.
But the tribunal said sexism was not a factor in her subsequent dismissal and threwout her claims for damages.
Ms Bullock immediately issued a statement claiming she had been "vindicated" by her stance against sexism in the department.
But she added her failure to win damages was a slap in the face.
The zero award was saying, "yes, the department was sexist, but hey, it doesn't matter and it hasn't affected you."
She added: "It's a slap in the face to me and all women, as it means employers can treat women in a sexist way and not suffer consequences."
Ms Bullock sought two years salary totalling almost $100,000, another $10,000 for humiliation and loss of dignity and $8000 for being held back from promotion.
The long-running affair started at a Corrections Department poroporaki in Auckland in December 2004.
Ms Bullock was asked to move to the back of the ceremony for offenders graduating in a departmental programme - a move she said was because of her gender.
She sat down in the front row refused to move when asked to do so.
She went public with her concerns about her treatment that day, continued to do so and was eventually dismissed.
The tribunal said today it accepted the department's view that its decision to suspend and then dismiss Ms Bullock "had nothing to do with her sex".
"She was suspended and dismissed because of her repeated refusal to comply with the terms of [the department's policy] in relation to public comment by departmental employees."
The department forbids staff talking to the media or making public comments.
