An employment law expert says the Kamahl Santamaria saga should send a clear warning about the dangers of hiring friends.

TVNZ Head of News Paul Yurisich has resigned, after a review found he did no reference checks before hiring the former Breakfast presenter.

The pair had previously worked together at Al Jazeera.

Employment law expert Max Whitehead told Kate Hawkesby TVNZ has suffered huge reputation damage.

He says this is one of the most foolish things he's seen someone do.

Phil O'Sullivan will remain TVNZ's Acting Head of News and Current Affairs until a permanent replacement is chosen for the role.

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