Budlong claimed the NCR culture was tolerant of such images, which had been circulated to him by senior colleagues, including a director and general manager.

NCR Tuesday said it was surprised and disappointed with the decision.

NCR spokesman Graham White said NCR would comply with the order to reinstate Budlong, but strongly denied the claims that NCR employees engage in mechanical, unthinking routine and found the terminology demeaning.

"NCR profoundly disagrees with the NSW IRC's conclusion that this amounted to a one-off breach, albeit one that the NSW IRC concedes is a serious breach," White said.

"Mr Budlong's employment with NCR was terminated on June 7, 2005, following the discovery of excessive and explicit pornographic materials on his work computer that were accessed, received, stored and viewed over a number of years.