Write down the exact words
A later dispute may turn on whether the employer truly gave an ultimatum, expressed a preliminary view, proposed a settlement option or merely discussed possible outcomes.
RESIGN OR BE FIRED
A forced choice can still be a dismissal in substance.
If an employer tells you to resign or be dismissed, the fact that you later write a resignation letter does not necessarily make the exit voluntary. New Zealand constructive-dismissal principles expressly recognise situations where an employee is given that kind of choice.
START WITH THE REAL ISSUE
What this situation actually means.
Constructive dismissal is a legal characterisation of a resignation that is treated as a dismissal because of the employer's conduct. One recognised category is an employer giving the employee a choice between resigning and being dismissed.
Other constructive-dismissal cases can involve deliberate pressure to leave or a serious employer breach that effectively leaves no reasonable choice but resignation. The causal connection matters: the resignation needs to result from the employer conduct relied on.
Where it is safe and practical, raising the concern and giving the employer a reasonable opportunity to correct the problem can strengthen the record. But a direct resign-or-be-fired ultimatum may create a much more immediate problem, particularly if the employer is bypassing a proper disciplinary or performance process.
WHAT MATTERS
Four things to check before deciding what the case is worth.
Do not create a false 'voluntary' record
Be careful with documents describing the resignation as entirely voluntary if that is not what happened. Ask for time to read and obtain advice.
Separate process from settlement
An employer can propose an agreed exit, but a settlement negotiation is different from threatening dismissal without following an applicable process.
Causation matters
If you resign, the evidence should show why. A resignation letter that records the pressure or breach can be more useful than a generic one-line resignation.
WHAT TO DO NOW
Keep the next steps practical.
Ask for the proposal in writing
If possible, confirm what you were told: resign, accept an agreed exit, or face a disciplinary/performance decision.
Do not sign on the spot
Seek time to review any resignation, settlement or record-of-settlement document unless there is a compelling reason not to.
Preserve the surrounding history
Keep complaints, disciplinary material, performance documents, messages and witnesses to the conversation.
Get advice before resigning if you can
Constructive dismissal is highly fact-sensitive. The steps immediately before resignation can materially affect whether the claim succeeds.
RED FLAGS
Facts that deserve a closer look.
- CHECK
You are given minutes to decide
- CHECK
The employer says resignation will look better but refuses to explain the alternative
- CHECK
You are told a disciplinary outcome is certain before a process occurs
- CHECK
A settlement document is presented as mandatory
- CHECK
The employer asks you to write that the decision was entirely your own
FAQ
Questions people ask in this situation.
If I resign because they said they would fire me, is that constructive dismissal?
It can be. Employment New Zealand identifies a choice between resigning and being dismissed as one situation that may amount to constructive dismissal. The exact facts still matter.
Should I resign before a disciplinary meeting?
Usually do not assume resignation is required. A pending allegation is not the same as a final lawful dismissal, and resigning can alter the legal and practical position.
Can I negotiate an exit instead?
Yes. A negotiated exit can be sensible, but the terms should be understood and documented properly. A mediator-signed Record of Settlement has strong finality.
What should my resignation letter say if I have no realistic choice?
It should accurately record the essential reason for resigning without unnecessary argument. Because wording and timing can matter, get advice before sending it where possible.
RESIGN OR BE FIRED
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