‘Betrayed’ Subway worker told to resign to get Xmas leave awarded $33,000 for unjustified dismissal

Monday, 29 June 2026

A Christchurch fast-food worker who was repeatedly told to resign to take Christmas leave has been awarded more than $33,000 after the Employment Relations Authority found she was unfairly dismissed.

Bishopdale Subway employee Sophie Kennett was granted $19,000 for “humiliation, loss of dignity and injury to feelings”, as well as thousands in lost wages and a missed notice period, after taking former employer Polygon GY Developments to the ERA for unjustified dismissal.

She also claimed she had been constructively dismissed, after she wasn’t rehired as expected a second time due to the franchise being sold off. In a determination released last week, the authority agreed.

Kennett started working at the Spitfire Square Subway franchise in March 2023 as a “sandwich artist”, the court document said. She moved across to the Bishopdale store, also owned by Polygon, that August.

It described her as a “diligent worker” and said the company had intended to promote her to an assistant manager position.

In November she met with Polygon director Stan Greene for a performance review. They also discussed a leave request, where she had asked for more than four weeks off – spanning December 20 to January 22, 2024.

Kennett claimed Greene said she would need to resign to take this leave, but promised her an assistant manager position when she returned. Greene disputed this, saying he had only presented it to her as a practical option after learning she had already booked her flights.

In late 2024, Kennett made a similar leave request, this time running from December 21 to January 13, 2025. Kennett claimed Greene again told her to resign, in what the authority said amounted to a “heated exchange”.

A witness told the authority that when she walked into the rear of the store, “Mr Greene (who is considerably taller than Ms Kennett) was standing over Ms Kennett shouting”.

She put in her notice the next day. On her last day of work, Greene gave her a letter saying the Bishopdale store was being sold.

While he said he would try to get her alternative employment with the new owner, a company called Wealthjoy, her position may be disestablished. A few weeks later he sent her another letter confirming she would be made redundant, even though she had resigned in December.

The ERA ultimately sided with Kennett. In his decision, member William Fussey agreed the situation amounted to a constructive dismissal.

“It was presented as the only viable option in the context of a heated exchange in which Ms Kennett felt intimidated, and it was reinforced by assurances of continued employment,” he wrote.

Fussey added evidence from another employee suggested requiring employees to resign and then rehiring them “had become a pattern of behaviour for Mr Greene”.

“Ms Kennett set out her injury, dignity to feelings, and humiliation in her witness statement. In summary, she felt depressed, emotionally distressed and betrayed,” he wrote.

Letters from her doctor and counsellor said she had suffered depression, anxiety, and panic attacks.

The authority gave Polygon 28 days from the date of its determination to pay Kennett.

This included the $19,000 compensation; nearly $5850 in lost wages; about $3900 to cover what should have been her four-week notice period; $2660 in holiday and KiwiSaver entitlements; $238 for working through what should have been her breaks, and almost $450 interest.

The company has also been ordered to pay a $2000 penalty, with half to go to Kennett, and half to the Crown.