Telling the boss to "stick his job up his arse" is not always the same as a resignation, the Employment Relations Authority says.
The authority, sitting in Christchurch, where the parties now live, has ruled on an alleged dismissal in Hamilton.
Wayne and Valerie Davis managed a Hamilton shop for Toolking Plus Ltd from August 2004 to August 2007, when they were allegedly unfairly fired.
While an employer was entitled to rely on a clear resignation, care was needed when words were spoken as "part of an emotional outburst in the heat of the moment", the authority said.
Toolking Plus director Neil Edge told the authority the Davises resigned when, in a heated exchange prompted by Edge raising problems with their management, Wayne Davis told him to "stick his job up his arse" and Valerie Davis said she would write a letter of resignation.
The couple denied Edge's account, although the authority found "in all probability" Wayne Davis had made the remark.
The authority was told the couple returned from the funeral of their 16-year-old grandchild in Westport and a period of leave in August 2007, and Edge criticised their running of the shop.
Wayne Davis told the authority he had no opportunity to give Edge a proper response because Edge was "blowing up and roaring like a bull".
A fair and reasonable employer would have realised the Davises had not intended to resign immediately or to vacate their flat above the shop straight away, the authority said. Such an employer would have approached the couple the next day to clarify their intentions.
"Instead, when Mr Edge met with Mr and Mrs Davis, he asked for his key and cash cards and told them to be out of the flat by Sunday," the authority said.
Since Edge had not warned the Davises of his concerns and no proper disciplinary process was followed, the dismissal was unjustified, it said.
It awarded Wayne Davis $8450 for lost earnings and $6000 compensation for distress, but reduced the award by 30 per cent to $10,115 because of Davis's remark and his failure to talk to Edge about the exchange.
Valerie Davis was awarded $2739 for lost earnings and $6000 for distress.
The authority ruled Toolking must pay the Davises 10 per cent of the proceeds of the sale of the shop, as Edge had earlier agreed to do.
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