A Woolworths Group (ASX:WOW) employee who was involved in a verbal altercation with a shopper at a New South Wales store in August 2025 did not appear to act based on the shopper's race, the state's Civil and Administrative Tribunal said in a Tuesday ruling.

The shopper, Parvit Haji Zadeh, alleged that the employee refused to provide him a service in a complaint lodged with Anti-Discrimination NSW, which was subsequently referred to the Tribunal.

The Tribunal found that while there was differential treatment due to the employee's use of offensive language, "the complainant fails to establish that the respondent provided him a service on less favorable terms because of his race."

A Woolworths investigation found that Zadeh was the aggressor in the verbal altercation and in breach of the company's zero-tolerance policy regarding aggression towards employees.

The company's shares fell nearly 2% in recent Tuesday trade.