Redelinghuys v Adapt IT (Pty) Ltd (C199/2019) [2023] ZALCCT 10; [2023] 7 BLLR 678 (LC); (2023) 44 ILJ 1590 (LC) (27 March 2023)

Redelinghuys v Adapt IT (Pty) Ltd (C199/2019) [2023] ZALCCT 10; [2023] 7 BLLR 678 (LC); (2023) 44 ILJ 1590 (LC) (27 March 2023)

The court found that the contractual terms governing the applicant's entitlement to commission were established in the correspondence and the letter of 24 April 2018. The commission was based on gross profit sold, not delivered, and was earned when the deal was concluded, becoming payable once revenue flowed, even if after termination. The respondent failed to prove any contractual term or policy that commission was forfeited upon resignation. The evidence did not support the respondent's contention that the applicant had ongoing project delivery obligations or that commission was subject to actual gross profit delivered. The applicant's understanding of commission entitlement was not...

Citation
[2023] ZALCCT 10
Parties
Applicant: Nicola Redelinghuys; Respondent: Adapt IT (Pty) Ltd
Court
Labour Court Cape Town
Jurisdiction
South Africa
Judgment Date
27 March 2023
Case Number
C199/2019
Procedural Posture
Trial / Final Judgment
Outcome
Applicant's claim for commission succeeds; respondent is ordered to pay the claimed commission, interest, and costs.
Judges
Lagrange
Legal Topics
Commission Claims, Employment Contract Interpretation, Basic Conditions of Employment Act, Remuneration Post Termination
Labour Law Civil Procedure Commission Claims Employment Contract Interpretation Basic Conditions of Employment Act Remuneration Post Termination

Case Brief

Summary, issues, holding and outcome

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Parties

Nicola Redelinghuys

Applicant

Adapt IT (Pty) Ltd

Respondent

Procedural Posture

Trial / Final Judgment

Legal Issues

  1. 1 Whether the applicant is contractually entitled to commission on deals concluded prior to termination of employment.
  2. 2 Whether commission is calculated on gross profit sold or gross profit delivered.
  3. 3 Whether the employer had a contractual term or policy that commission is forfeited upon resignation.

Ratio Decidendi

The court found that the contractual terms governing the applicant's entitlement to commission were established in the correspondence and the letter of 24 April 2018. The commission was based on gross profit sold, not delivered, and was earned when the deal was concluded, becoming payable once revenue flowed, even if after termination. The respondent failed to prove any contractual term or policy that commission was forfeited upon resignation. The evidence did not support the respondent's contention that the applicant had ongoing project delivery obligations or that commission was subject to actual gross profit delivered. The applicant's understanding of commission entitlement was not...

Court Disposition

Applicant's claim for commission succeeds; respondent is ordered to pay the claimed commission, interest, and costs.

Orders

  • The respondent is liable to the applicant for payment of commission in the amount of R372,920, payable 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.