South Africa’s Labour Court has ordered software services firm Adapt IT to pay its former executive, Nicola Redelinghuys, R372 920 in commission, as well as interest, for a deal she sealed in 2018.
The applicant, Redelinghuys, is a former employee of the respondent, Adapt IT, a company which provides specialised software and business solutions to clients.
Redelinghuys’s claim was for unpaid commission, which she claimed she was entitled to under the terms governing her commission payment in her role as new business development executive at Adapt IT.
According to court documents seen by ITWeb, she sought an order directing Adapt IT to pay her the commission claimed, which she valued at R372 920.
She also sought an order directing her former employer to pay her interest on the aforementioned amount, to be calculated from 31 January 2020 at the prescribed rate of 10.25% per annum.
According to her LinkedIn profile, Redelinghuys is now an IBM partner based in Australia.
Adapt IT delisted from the Johannesburg Stock Exchange in January last year after the company was acquired by Canada’s Volaris Group.
Redelinghuys sought commission for a R7.9 million Vivo Energy deal that she sealed while working as new business development executive at Adapt IT. The other commission relates to a R403 000 contract with consultancy firm Accenture.
Says the Labour Court: “It is common cause that the applicant was required to find new clients and sell the respondent’s services to these clients.
“She was tasked with compiling a proposal of how much each new project would cost, with the assistance of internal operational experts’ advice, and would put a deal together using the advice provided. The estimation process was detailed and included a gross profit figure.”
It notes there was a dispute as to whether Redelinghuys was required to participate in the delivery of the projects, or whether her role was confined to the sales and the conclusion of deals.
Redelinghuys maintained she had no such role once a deal was finalised and handed over for implementation.
On 11 December 2018, her attorney sent a letter of demand to the respondent for payment of the full commission claimed.
Thereafter, the parties’ respective lawyers engaged in correspondence over the disputed claim.
The parties could not conclude a pre-trial agreement, as the firm wished to include another reason why Redelinghuys was not entitled to the commission, namely that the 40% gross profit condition had not been met.
Adapt IT was subsequently given leave to amend its answering statement to reflect this additional reason for not paying the commission.
Judge Robert Lagrange, after hearing the case, ordered: “The respondent is liable to the applicant for payment of commission due to her in terms of her contract of employment in the amount of R372 920, which the respondent must pay to her within 15 days of this order.
“The respondent must pay the applicant interest on the aforementioned amount, calculated from 31 January 2020 at the prescribed rate of 10.25% per annum. The respondent must pay the applicant’s costs.”
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