Stuart Nash is hanging on in Cabinet after being demoted to the lowest ranking.

A third incident involving Nash's conduct as a Government Minister came to light on Friday, in which he approached a Ministry of Business, Innovation and Employment official about an immigration case.

Chris Hipkins has gone on to say that any further lapses in Nash's judgement will result in his outright dismissal as a minister. 

NZ Herald political reporter Adam Pearse says someone with Stuart Nash's level of power and influence still has to follow the rules and needed the reminder to toe the line from the PM.

LISTEN ABOVE

• Police Association: Stuart Nash had to resign, but will be sorely missed
• Stuart Nash demoted in Cabinet after third strike, on final warning
• Nash previously rebuked, Crown Law looked at the possibility of prosecution