Families commissioner Parmjeet Parmar will remain in her job, despite being accused of campaigning for the National Party.
Labour MP Rajen Prasad on Wednesday revealed a photo of Ms Parmar wearing a National Party rosette alongside Prime Minister John Key at the Pasifika Festival during the weekend.
He said that was inappropriate, and demanded she stand down immediately.
But Chief Families Commissioner Belinda Milnes said the commission had sought advice from the State Services Commission and had confirmed its approach was consistent with the guidelines.
She said Dr Parmar had not yet made a decision about seeking to become an MP.
Ms Milnes said Dr Parmar would let her know if she did decide to seek nomination and, if she was selected, would have to stand aside until after the election.
Mr Prasad said as soon as anyone in the National Party or the commission heard about the link, they should have taken action. He says three of the five commissioners have direct links to the National Party.
