0349 GMT December 12, 2019
Julie Savage said she was disrespected when her boss and co-workers referred to her as ‘Kiwi’ instead of her name, BBC reported.
However an Australian tribunal ruled that she had not suffered unfair treatment or discrimination at work.
A judge noted that the term was commonly used by New Zealanders themselves.
"Calling a New Zealander a 'Kiwi' is not of itself offensive. 'Kiwi' is not an insult," said Judge Leonie Farrell.
She added that the word was often viewed as a ‘term of endearment.’
It is derived from the name of a flightless bird native to the country.
Savage said the issue had prompted her to resign from her job as a supervisor at Vili's Cakes, a bakery in Adelaide, in 2016.
She later lodged a complaint with the South Australian Employment Tribunal.
But it found no evidence that discrimination laws had been violated.
"[She] did not allege that she suffered unfavorable treatment in respect of the terms of her employment, lack of progression or segregation," Farrell said.
"At its core [her complaint] is not about racism."
The bakery's owner, Vili Milisits, told local media that the ‘right outcome’ had been reached.