![PRASAD v WARRIOR NZ LIMITED [2025] NZERA 492 - employer breaches caused constructive dismissal](/Images/site/EmploymentAdvocatesAucklandCard.jpg)
Mr Prasad's employment with Warrior NZ deteriorated after employer breaches and a breakdown in the working relationship. The employer did not attend the ERA investigation meeting despite being served with the proceeding.
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
Mr Prasad's employment with Warrior NZ deteriorated after employer breaches and a breakdown in the working relationship. The employer did not attend the ERA investigation meeting despite being served with the proceeding.
Hailee-Anne Hirst said a bakery effectively dismissed her after calling her in on a day off and confronting her about allegedly missing market takings. The employer denied dismissing her but did not participate in the investigation meeting.
Mr Lazaro said Waimea Contract Carriers dismissed him at a 4 December meeting; the employer said he was merely suspended on full pay while training and other options were considered, and that employment ended later after he refused to return.
Mr Tong's claims against Sheffield Steel arose after workplace difficulties, attempts to place him with another employer and the eventual end of his employment. He alleged both unjustified disadvantage and constructive dismissal.
WRW resigned after McCarthy Enterprises proposed changes to her work and the relationship deteriorated. The ERA had to decide whether the employer's conduct was sufficiently serious and causative to convert that resignation into a constructive dismissal and whether any wage loss was proved.
Mr Da Silva left a meeting with DSJ Joinery believing he had been dismissed, although the employer said the meeting was about health and safety rather than discipline. The ERA examined whether there was an actual dismissal and, if not, whether the employer's conduct nevertheless ended the relationship.
Mr Kumar resigned from JK Hospitality after alleging he was repeatedly denied proper breaks and practical support at work. The ERA considered whether those breaches were sufficiently serious that resignation was a reasonably foreseeable response.
Big B Cartage said Mr Tyack had resigned by text, while Tyack maintained he had not and later attempted to return after a period of medical incapacity. The case turned on who actually ended the employment relationship and whether the employer could rely on the alleged resignation.