"That footage ... clearly shows Tania taking money from both my personal handbag and wallet and from the cash drawer. The footage shows her placing money in her own bag and also hiding it about her person," Mrs Smith told ERA member Mike Loftus.
However, Ms Mercer-Black said she was owed money by Mrs Smith after a working trip to Australia.
When Ms Mercer-Black arrived at a Sydney hotel - which had been paid for by Mrs Smith as part of a working agreement - she said she found a credit card needed to be provided to release the room, and Mrs Smith's card would not work. Ms Mercer-Black said she provided her own credit card and when she returned to New Zealand she found $374 was charged to it.
She then went to Mrs Smith for reimbursement but she said Mrs Smith refused to pay. Ms Mercer-Black said she became increasingly upset and disillusioned.
"Knowing my Visa bill was coming due, I needed to make at least the interest payment. I, in an error [of] judgment, entered Jaimee's office on the day in question and removed $60 from her bag and drawer."
She felt extremely guilty about this and worked out she only needed $40 for the initial interest payment and later returned and replaced $20.
"I am extremely remorseful for this event and wish I had never made this decision," she told the ERA.
For the ERA Mr Loftus said Ms Mercer-Black absolutely contributed to the situation she found herself in. "I cannot get past the fact that theft is theft."
Therefore, Ms Mercer-Black's claim she was unjustifiably dismissed failed.
Ms Mercer-Black today said she was looking into appealing the decision and had 28 days to make the decision.
She did not want to comment on the findings while an appeal might be lodged.
Mrs Smith could not be reached for comment.
Mr Loftus said it had taken so long for its findings to be released because the file was inaccessible for a considerable amount of time because of Christchurch's earthquakes.