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Car dealership fined $19k after sacking employee

Author
Open Justice,
Publish Date
Tue, 5 Apr 2022, 7:35PM
Auckland's Azak Cars dealership has been ordered to pay almost $19k, after unjustifiably dismissing an employee. Photo / Google
Auckland's Azak Cars dealership has been ordered to pay almost $19k, after unjustifiably dismissing an employee. Photo / Google

Car dealership fined $19k after sacking employee

Author
Open Justice,
Publish Date
Tue, 5 Apr 2022, 7:35PM

A director of a car dealership ordered to pay more than $19,000 for unjustifiably dismissing an employee says he had no idea of the proceedings against his business, nor the compensation his company has been ordered to pay. 

Azak Cars Limited, a second-hand car dealership in Auckland's East Tamaki, has been ordered by the Employment Relations Authority to pay $19,007 to a former employee who was unlawfully sacked on the spot. 

The employee, Rasheel Naidu, had worked for the company as a car groomer for just over a year at the time of his dismissal. 

Naidu had never been subject to disciplinary action within the company, nor ever taken a day of annual leave, the former employee told the authority. 

The sudden and immediate sacking occurred in February 2021, after a disagreement between Naidu and another groomer about who was cleaning which vehicle. 

The disagreement escalated, leading to Monica Zakeri, the wife of the company's co-director, questioning Naidu about the dispute. 

Believing Zakeri had already taken the side of the other employee, Naidu ignored her and continued working. The conversation then deteriorated, with Zakeri yelling at Naidu to "Get the f**k off the yard now". 

Naidu complied, calling Zakeri a "biased bi**h" on his way out. He returned to the yard an hour later and was told by Zakeri he would receive a final pay and would not be returning to work. 

The company was ordered to pay Naidu the cost of lost wages and compensation, as well as unpaid annual leave. Photo / NZME 

Naidu returned to the dealership a second time, to retrieve his packed lunch. He then left for the final time. 

The dismissal resulted in Naidu taking his case to the Employment Relations Authority (ERA) in May 2021, claiming he was unjustifiably dismissed. 

But despite the proceedings, Azak Cars did not engage with the ERA process, and did not respond to the authority's multiple attempts to contact the company. 

That left Naidu's testimony and claim unchallenged, leaving the ERA with no option but to take it at face value. 

The ERA found that the company did unjustifiably dismiss him, leading to what Naidu described as "significant hurt, humiliation, and loss of dignity". 

The former employee says he was left jobless for three months after the sacking, relying on government support and money from family and friends. 

The ERA ordered compensation for unjustified dismissal of $7000 – reduced to $6300 after a 10 per cent reduction due to Naidu's act of returning to the premises twice, thereby inflaming the situation. 

The former employee was also awarded $8636 in lost wages, as well as $4000 for unpaid annual leave, the latter of which must include interest. 

The ERA's $71 filing fee was also ordered to be paid to Naidu by the company. 

When contacted on Tuesday, Azak Cars director Ali Zakeri said he had no knowledge of the proceedings - despite being the co-owner of the company and the husband of the employee who sacked Naidu. 

"What's that about?" Zakeri asked. "As far as I know, I know nothing, nothing, nothing know anything about this [sic]." 

Told of the $19,000 order, Zakeri was taken aback. 

"We have no idea about this, to be honest." 

The car dealer then threatened Open Justice with legal action, saying if an article was to be published it required sign-off from himself. 

Zakeri did not respond to questions about why the company didn't engage with the ERA, despite the authority's multiple attempts to inform the company of the investigation, as well as written notice of the hearing. 

According to the authority's order, the company has until 4pm on April 14 to pay the employee the $19,007. 

- by Ethan Griffiths, Open Justice

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