2 Cheap Cars to pay more than $320,000

2 Cheap Cars may be banned from hiring migrant workers. Photo / File

Second-hand car dealer 2 Cheap Cars Limited has been ordered to pay $70,000 and could be liable for more than $250,000 after employment breaches at the company.

The Employment Relations Authority (ERA) made the order after a Labour Inspectorate investigation found serious breaches of minimum wage, holiday pay and record-keeping at the firm, which has branches across New Zealand.

In total, 2 Cheap Cars could pay more than $320,000 in fines and backpay for its employees for the breaches and would be placed on a 24-month stand-down period from recruiting migrant workers as a result.

"There simply is no excuse for employers to not meet their obligations and as this case demonstrates, it can be costly," said inspectorate regional manager Loua Ward.

The inspectorate sampled 12 of the roughly 83 employees, and found they were owed $20,835.34 of entitlements.

These have since been paid, but Ward said the nature of the breaches meant almost all employees were affected.

2 Cheap Cars was ordered last November to audit its records, which has so far uncovered estimated arrears of more than $250,000.

A second external audit is now being done, to ensure all current and former workers have received their correct entitlements.

"Not only did the employer breach the rights of the people working for them, they also attempted to gain an unfair advantage over their law-abiding competitors," Ward said.

"A number of the employees were migrant workers who may not have been aware of all their rights and entitlements.

"Every worker in New Zealand must be paid at least the minimum wage for every hour worked, along with their holiday and leave entitlements."