Wang v Steel Master Co Ltd [2025] NZERA 457

Steel Master said Mr Wang resigned. The ERA disagreed, finding the employment ended by the employer's action and that the dismissal was unjustified.

Dismissal or resignation?

The first issue was whether Mr Wang had resigned during meetings about performance concerns. There was no written resignation. The Authority found the evidence showed Steel Master gave Mr Wang a choice to find another job or be "unilaterally dismissed". An intention to resign is not the same as an actual resignation, and the Authority found termination was at the employer's initiative.

Why the dismissal was unjustified

Steel Master had legitimate performance concerns, but those concerns did not remove the need for a fair process. The Authority found the employer had not sufficiently substantiated the concerns or followed the steps expected of a fair and reasonable employer before dismissal. It also failed to provide a statement of reasons after Mr Wang requested one.

Remedies

• Compensation: $11,000 for humiliation, loss of dignity and injury to feelings.
• Lost wages: the equivalent of 8 weeks' wages plus 8% holiday entitlements.
• Sick leave: $888.32 gross plus interest.
• Annual leave: $3,555.29 gross plus interest.
• Filing fee: $71.55.
• Contribution: no reduction. The performance concerns did not establish blameworthy contribution to the grievance.
• Costs: reserved.

Why the case matters

• An employee discussing departure or looking for another job does not necessarily amount to a resignation.
• Where the employer presents termination as inevitable, the Authority may find the ending was a dismissal.
• Legitimate performance concerns still require a procedurally fair and substantively justified response.

Read the full ERA determination (embedded)

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Source: Employment Relations Authority determination hosted on determinations.era.govt.nz.