Waitokia made a claim of unjustified dismissal against the company and Magbagbeola to the ERA seeking lost wages and compensation, together with a penalty for the lack of a written individual employment agreement.
Magbagbeola said no individual employment agreement was provided because the business was failing.
He claimed Waitokia did not "show up" and at the time of the argument he was concerned about the future of his business, which he had recently bought, and was not in a good frame of mind.
During the ERA investigation an advocate made submissions for Waitokia but Magbagbeola declined the opportunity to speak.
Authority member Antoinette Baker found Magbagbeola was Waitokia's employer as he was responsible for directing his day-to-day work and bank records showed he paid his wages.
She said Magbagbeola acknowledged he told Waitokia something like "bugger off" in the heat of the argument.
When Waitokia challenged the legitimacy of this action and advised he would get a lawyer, Magbagbeola responded there was no contract.
Waitokia never returned to work and Magbagbeola didn't attempt to engage with him after telling him to leave.
Magbagbeola, however, told the ERA he wanted Waitokia to continue to groom cars but he "didn't show up".
Baker ruled Waitokia had been fired as no attempt was made to contact him after the heated exchange to remedy the situation.
Waitokia had been raising reasonable issues about his employment prior to and during the confrontation.
She found Magbagbeola's claim the business was failing was inconsistent with him taking on an employee.
"Waitokia on the other hand wanted to clarify his pay rate, the provision of paid breaks and get a written employment agreement, none of which are unreasonable things for an
employee to expect an employer to communicate about."
Issues about the quality of Waitokia's work were not part of the reason for his dismissal as they hadn't been previously raised, Baker said in reaching her decision he was unjustifiably sacked.
She accepted a sense of hurt and humiliation lingered and awarded Waitokia $8000 compensation, just over half of the $15,000 he sought.
Waitokia also received three months lost wages of $4914, $2250 in costs and his filing fee of $71.56.
Magbagbeola had 28 days from the judgment date of October 12 to pay the money.