Workers at a factory in Cardiff made racist and homophobic remarks and joked about pedophile.
Employee Nathan Owens also claimed that the Nazi was painted on the wall of the toilet partition of euro quality paint Co. , Ltd.
At a hearing in Cardiff, a worker was called "Eddie" because he looked like Eddie Murphy, a Hollywood actor.
Julie Hunt, head of human resources at the factory, said it was a "joke" but "no malice ".
MS Hunt said the company took racist allegations "absolutely" seriously.
But when someone asked the general manager Steve Rocher if the joke could go too far, he replied: "I don't think the joke can go too far, according to its definition, this is something you can't go too far.
Another worker, Lee Hardy, told the hearing that because "Jimmy Savile is in court", a pedophile joke was made.
He added: "It was a general topic in newspapers and social media at the time, so everyone was talking about it at the time.
He also denied calling his colleagues "IRA terrorists ".
The hearing continues.