Elaine Day claims she was targeted for 'rocking the boat'
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The Prince of Wales's staff have defended his household after an ex-PA said it was an Edwardian institution.
Elaine Day, 45, has told Croydon Employment Tribunal in south London it was "hierarchical and elitist".
But the Prince's former equerry, Lt Cdr Alistair Graham, said the household was not "stereotypical" and it compared favourably to the Royal Navy.
Ms Day is claiming sex discrimination and unfair dismissal against Clarence House, which she left in 2004.
She says Paul Kefford, Prince Charles' gay assistant private secretary, sexually harassed her by frequently rubbing her back "inappropriately".
Inclusiveness
Lt Cdr Graham said the household was run with a "sense of inclusiveness" because of Charles's "wishes and aspirations".
"It compares favourably with the Ministry of Defence and the Royal Navy," he said.
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There's no wider conspiracy
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The submariner was then asked if he thought the household was reasonably conservative, old-fashioned and traditional in its approach to work.
He replied: "I don't consider these values to be traditional. These values are sound and important in a modern organisation."
Ms Day, of Belvedere, Kent, left Clarence House earlier this year after five years in the job.
Moved to 'attic'
She has told the tribunal she was targeted by Prince Charles's staff because she "rocked the boat".
The hearing heard Ms Day was unhappy at being moved to an "attic" room during a trip to Holyrood Palace, Edinburgh, in June 2003.
Lt Cdr Graham denied his decision to change the rooms was because she had "rocked the boat" by making the sexual harassment allegation.
Ms Day says she was sexually harassed by Paul Kefford
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He said another member of staff needed her original room because it was near her office.
"To say it was in the attic is an overstatement. There's no suggestion that she was in the servant's quarters at the top of the tower."
'High standards'
Lt Cdr Graham said he was not aware of the sexual allegations at the time of the trip to Scotland, adding: "There's no wider conspiracy."
Mimi Watts, head of personnel and administration at Clarence House, denied Ms Day had made allegations of sexual harassment about Mr Kefford to her.
The hearing heard Ms Day had told Mrs Watts she "had strange feelings about him" and "felt uncomfortable with him and would not wish to go out of the office with him".
But Mrs Watts said she thought her feelings were because of his "very high standards" of work or "she might just have not liked him".
The hearing continues on Tuesday.