Steadfast and PSC Connect NZ have distanced themselves from a New Zealand broker that dismissed an employee for not taking out a personal loan to prop up the ailing business.

The Employment Relations Authority last month ordered Global Cover to pay Mustafa Bhamji $NZ40,883.95 ($38,605) for constructive dismissal.

In a bizarre sequence of events late last year, Mr Bhamji was given shares in the company without prior discussion. He interpreted this as a positive review of his performance.

However, soon after he did not receive his fortnightly wage, and was told by company director Jiuria Raijeli Mario that the business had no funds or income.

He was then asked as a shareholder to obtain a personal loan to help the company pay its debts and his wages.

Mr Bhamji refused because he could not afford the repayments. His company car and phone files were then confiscated, effectively rendering him unable to do his job.

Until recently Global Cover claimed online to be a member of Steadfast and PSC Connect NZ, but the broker network was quick to have this claim removed.

Steadfast New Zealand EGM Allan Reynolds told insuranceNEWS.com.au Global Cover is not part of PSC Connect NZ or the Steadfast network of brokers.

“It is using information about Steadfast without our permission and [has] been requested to remove any reference to PSC Connect NZ and Steadfast from its website,” he said.

On top of the sum covering compensation and wages owed to Mr Bhamji, Global Cover was also ordered to pay $NZ21,751.90 ($20,539) in tax arrears to the New Zealand Inland Revenue.