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An employer unintentionally dismissed an employee when it treated his ambiguous comments as a resignation and "unilaterally" declared he was no longer employed, the Fair Work Commission has ruled.

SA Steel Works objected to the leading hand's general protections application involving dismissal, claiming he had voluntarily resigned following an altercation with a colleague in June this year.

The Commission heard the colleague believed the employee had mimicked and embarrassed him in front of another worker and, according to the employee, the colleague asked him "do you want to fight" and then headbutted him.

The colleague also told the employee his lack of respect for other workers caused them to "avoid and disrespect him"...