Driver threatened while seeking unpaid wages wins nearly $22,000 in ERA case

A taxi driver who was verbally abused and physically threatened while attempting to collect unpaid wages was constructively dismissed, the Employment Relations Authority (ERA) has found.

The Employment Relations Authority ordered Kaur Queens Trading Limited to pay Takaloo $2,045 in wage arrears and $286.04 in holiday pay, Stuff has reported.

To settle the personal grievance, the company has also been ordered to pay $12,038 in reimbursement for lost remuneration and $7,500 in compensation for harm. All sums are to be paid within 28 days.

Ashkan Vakilipour Takaloo worked for Kaur Queens Trading Limited, trading as Mr Singh Taxis, between January 2025 and March 2025. Although he signed a written independent contractor agreement, the authority determined the real nature of the relationship was one of employment, giving it jurisdiction to hear his claims, Stuff has reported. 

The business was operated by director and majority shareholder Jaspinder Singh.

According to the ERA, on Friday, March 14, 2025, Takaloo went to the company's office to collect $2,045 in unpaid wages that were due. Singh refused to pay him and verbally abused him in the office.

Authority member Philip Cheyne found that Takaloo felt physically threatened by Singh’s aggressive behaviour. Cheyne also noted that Singh had previously been highly disrespectful, impolite, and had used inappropriate language towards the driver, Stuff reported. 

"Taken together, the context, Mr Singh’s behaviour and the refusal to pay wages amounted to a very serious breach of duty owed by an employer to an employee," Stuff quoted Cheyne. 

The authority found that Takaloo resigned as a result of the conduct. When he gave notice, Singh responded by deactivating the access card Takaloo used for company business, preventing him from working out his notice period.

Cheyne ruled that Takaloo was constructively dismissed without justification.

Despite being served with the statement of problem, directions, and notice of the investigation meeting, Kaur Queens Trading Limited did not defend the application and failed to appear at the hearing.

During a case management conference, Singh argued that the authority lacked jurisdiction because Takaloo was an independent contractor. However, Cheyne determined that Takaloo worked under strict control, was integrated into the business, and lacked the indicators of being self-employed.