Customer service employees – motor car traders

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Background checks

You need to make some checks before allowing people to work for your business in a customer service capacity.

‘Customer service capacity’ means any position that involves the employee buying, selling or exchanging, or seeking to buy sell or exchange, motor cars on behalf of a motor car trader. It does not include employees engaged to sell ancillary products, or employees who are otherwise required to deal with customers.

Examples of a customer service employee include an employee who:

  • accompanies customers on test drives
  • is involved in negotiating the terms of the sale with a customer. 

You must not employ somebody in a customer service capacity if you know they are disqualified from holding a licence or from being employed with a motor car trader.

You must not employ somebody in a customer service capacity (unless they have the Business Licensing Authority's permission to be employed by you) if you know they:

  • have had a claim admitted against the Motor Car Traders Guarantee Fund (the Fund)
  • are a current or past partner, director, or involved in managing a partnership or company when it had a claim admitted against the Fund 
  • have been found guilty of a serious offence.

Documents a new customer service employee must provide

A new customer service employee must give you two documents:

1. A Licensed motor car trader Form 3 (employee declaration) (PDF, 58 KB) – on this form, the person must declare if they:

  • are disqualified
  • have committed an offence
  • have been involved in a claim against the Fund.

You must keep this form for at least six years. Do not send it to us.

2. A police check that is not more than six weeks old: this verifies the information in the Employee declaration. The person must give you this within six weeks of starting work.

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