A constructive dismissal is a resignation where an employee finds no choice but to resign. If a constructive dismissal occurs, the employee can later bring a personal grievance for unjustified dismissal.
A constructive dismissal is a resignation where the employee says they had no real choice but to resign because of the employer's actions. If it is truly a constructive dismissal, it can be treated as an unjustified dismissal personal grievance.
The classic NZ categories come from Woolworths. Constructive dismissal can occur where:
Where an employee resigns and claims constructive dismissal, the onus is on the employee to show that a dismissal has occurred in substance. That is why the "do not resign" advice is so important.
A common scenario is a disciplinary meeting or investigation where the employer is heading toward termination, then suggests the employee resign instead. Employees often think resignation "looks better", but legally it can destroy an unjustified dismissal claim because the end of employment can be treated as the employee's decision.
In many cases, the better approach is:
Constructive dismissal arguments often come up where there is a pattern of behaviour or a serious event that makes continued employment intolerable. Examples can include:
Personal grievances generally must be raised within 90 days of the relevant action or when it came to the employee's notice (whichever is later). With constructive dismissal, the timeline can become complicated (because it can involve a series of events), so delay can be fatal.
Constructive dismissal claims are evidence heavy. If you are considering resignation (or you have resigned), gather and preserve:
If you resign and later claim constructive dismissal, the resignation letter can become key evidence. If you intend to claim constructive dismissal, your letter should clearly record the reasons and complaints and the fact you previously raised concerns.
Your resignation letter (constructive dismissal style) should usually:
If a constructive dismissal is established, it is treated as a form of unjustified dismissal. Potential remedies can include reinstatement (where reasonable), reimbursement of lost wages, and compensation for hurt and humiliation. Outcomes depend on the facts and what happened after the resignation (including mitigation and job search).
Constructive dismissal risk is often created by poor process, unmanaged conflict, and sloppy communications. If you are managing a high conflict situation, get advice early and document your steps.
Employer advice and dispute defence
The fastest way is to submit the case form with a short timeline and key documents.
We will assess whether a constructive dismissal argument is realistic and what your best next step is.
Employee Case Form
![ZiGen Wong v NZAT Construction Limited [2026] NZERA 193 - employee status found despite no visa; $18,187.50 wage arrears + $1,455 holiday pay; constructive dismissal upheld](/Images/site/EmploymentAdvocatesAucklandCard.jpg)
ZiGen Wong worked for NZAT Construction without a valid work visa and was later denied wages and employment protections on the basis that the arrangement was not lawful employment. He claimed employee status, arrears and constructive dismissal.
Yang (Helen) Feng worked for Dong Construction in circumstances involving a disputed trial period and claims for unpaid employment entitlements. The ERA examined whether the trial clause could lawfully prevent a dismissal grievance and what wages or other payments remained owing.
Julie Curtis had a regular 20-hour week with Affordable UK Caravans when the employer told her there was no work until mid-January and refused to pay her contracted hours. She treated the prolonged exclusion from paid work as a serious breach and resigned.
Mr Zhang paid a $3,730 premium to obtain restaurant employment and later accumulated substantial unpaid wages. He resigned after the employment relationship deteriorated and argued the employer's breaches had forced that resignation.
Payal worked for JB Hospitality in a relationship involving unpaid wages and alleged premium payments. She resigned after the employment problems persisted and argued that the employer's breaches were sufficiently serious to amount to constructive dismissal.
Benjamin Thomas was placed on an open-ended paid suspension after issues arose about his prescribed medicinal-cannabis use. The employer then failed to progress a meaningful investigation or communicate a pathway back to work, and Mr Thomas eventually resigned alleging constructive dismissal.
Mr Canales accepted a part-time window-installer job with Thermashield but missed his intended first day because of a migraine. The case turned on whether an employment relationship had already been formed and whether later text messages brought it to an end.
Mr Cully resigned from The Work Shop Limited and alleged the employer's breaches were serious enough to amount to constructive dismissal. He also sought unpaid wages and compensation, requiring the ERA to determine whether his resignation was legally attributable to the employer's conduct.
