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Darleen Tana has resigned from the Green Party and may remain in Parliament, despite the party having demanded she quit as an MP.
The Green Party has been speaking to reporters after receiving an independent report from investigator and barrister Rachel Burt on Friday night.
Co-leader Chloe Swarbrick told media the MP's behaviour has fallen "far short" of what's expected and she should do the right thing and resign from Parliament.
After receiving the report, the party called a caucus meeting on Saturday, unanimously demanding she resign and saying they believed her position as an MP was untenable.
However, Tana resigned from the Green Party, tendering her resignation to the secretary and chief of staff. The party then informed the Speaker.
This means she could continue as an MP for the remainder of the term - unless the party uses the contentious 'party hopping' legislation.
The party is unlikely to do so, however, having consistently been ideologically opposed to the legislation.
Greens co-leader Chlöe Swarbrick speaks to media about Darleen Tana's future. Photo: RNZ / Samuel Rillstone
Tana has been suspended on full pay since March, after a series of allegations of migrant exploitation against her husband Christian Hoff-Nielsen's bicycle company, and claims she was also involved.
The claims include texts showing Tana told a migrant worker he could continue working in her husband's bike shop despite that being a breach of his visa conditions.
Other migrant workers complained of unpaid wages, with Tana still being involved in related decisions despite her resignation as a director and shareholder in 2019.
Burt's investigation was launched immediately after the accusations came to light, but has taken nearly four months to reach a conclusion.
Sunday marked 115 days since she was suspended, and means she has now spent more time suspended on full pay than acting in her role as an MP.
The party is yet to release the full report into Tana's actions, saying they were still in the process of contacting those named in it for privacy reasons.