NZ minister resigned after an incident involving a staff member's arm.

New Zealand's trade minister, Andrew Bayly, resigned after he "placed a hand" on a staff member's upper arm last week, which he described as "overbearing" behavior.

Bayly apologized for the event on Monday, describing it as an "animated discussion" rather than an argument.

While Bayly has left his ministerial posts, he remains a member of parliament.

His resignation on Monday comes after he was chastised in October for calling a winery worker a "loser"- including putting his fingers in an 'L' shape on his forehead - and allegedly using an expletive directed at them.

"As many of you know, I have been impatient to drive change in my ministerial portfolios," Bayly said in a statement.

"Last week, I had an animated discussion about work with a staff member. I took the discussion too far, and I placed a hand on their upper arm, which was inappropriate."

Bayly resigned last Friday, said New Zealand Prime Minister Christopher Luxon, adding that the event occurred on Tuesday.

Luxon stated the government's tackling the matter within a week was "pretty quick" and "pretty impressive".

However, Labour leader Chris Hipkins criticized Luxon as "incredibly weak" over his handling of the issue, saying that it should not have been dragged over the weekend.

"Christopher Luxon has once again set the bar for ministerial behavior so low that it would be almost impossible to get over it," he stated to the media on Monday.

Bayly stated that he needed to talk to his family and "would have had difficulty" speaking to the media earlier.

Bayly was first elected to the New Zealand parliament in 2014.  Before entering politics, Bayly worked in finance.

Bayly is the first minister to quit on his own volition under Prime Minister Luxon, whose popularity has plummeted to a new low, according to a poll. 

The 1News-Verian poll also revealed that his National-led coalition administration is losing popularity among voters.

The government has faced criticism for policies perceived as anti-Māori, such as the introduction of a bill that allegedly undermined Māori rights and the dissolution of the Māori Health Authority, established by the previous Labour government to promote health equality.

Scott Simpson, the ruling National Party's senior whip, will succeed Bayly as Minister for ACC (the national accidental injury compensation plan) and Minister of Commerce and Consumer Affairs.