Severed-head boy's gran at union inquiry

The grandmother of a young Sydney boy photographed with the head of a decapitated soldier in Syria has cried after giving evidence at the trade union royal commission.

Karen Nettleton, who worked as an accounts payable clerk for a company linked to underworld figure George Alex, was on Monday quizzed about payments coming from Elite Access Scaffolding.

The royal commission is investigating whether the NSW Construction, Forestry, Mining and Energy Union (CFMEU) was paid kickbacks by Mr Alex's companies.

She told the commission her son-in-law Khaleed Sharrouf had arranged an interview at Mr Alex's company.

In early August a photo of a young boy, believed to be Sharrouf's son, holding a severed head was posted on a Twitter account.

Ms Nettleton's daughter Tara is married to Sharrouf.

Peter Nettleton, the boy's grandfather, has told News Corp Australia he was "devastated" by the image.

After a short grilling in the witness box, Ms Nettleton left the commission.

The hearing continues.