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Court punishes Hewlett-Packard for under paying sales rep

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Court punishes Hewlett-Packard for under paying sales rep…….

 

SINGAPORE — A retrenched sales product specialist with IT firm Hewlett-Packard (HP) is entitled to about S$600,000 in incentives for winning back a client, the High Court has ruled.

 

In a judgment made public today (Aug 5), Judicial Commissioner Edmund Leow ruled that Ms Corinna Chin Shu Hwa had helped win back electronic payments provider NETS as a customer for the Singapore subsidiary of HP, and the contract fell within the definition of “new business” for HP.

 

NETS was a HP customer but decided in late 2010 to buy IBM servers. The platform-migration process ran into problems and Ms Chin and her colleagues tried to woo NETS back in 2011 by, among other things, refusing to extend maintenance services for the existing servers unless NETS inked a new contract with HP.

 

This put pressure on NETS’ planned migration to the IBM servers, and it eventually ordered new HP servers in a March 2012 contract worth about S$5.38 million.

HP had argued that the NETS contract failed to meet the criteria for new business, and paid Ms Chin S$229,370.60 in incentives when it retrenched her in June 2012.

 

JC Leow ruled that HP’s meaning of “new end user customer” – part of how sales specialists’ performances were assessed from November 2011 – was ambiguous. The justice of the case demands that the company bear the risk of this ambiguity, he added.

 

“In terms of sales, NETS had been lost as a customer” when it decided to buy IBM servers in late 2010, the judge wrote.

Although NETS’ platform migration was from existing HP servers to new HP ones, it was because NETS was won back as a customer before the migration process was complete, and was hence not a “technology refresh contract”, JC Leow noted.

 

“Therefore, NETS was a ‘win back’ – i.e. a new end user customer – when it signed a contract for HP’s NonStop Blades servers in March 2012”, and was considered “new business”, he ruled.

 

And as Ms Chin was involuntarily terminated in June 2012 before the end of HP’s financial year, the calculation of her incentive pay should be on a pro-rated basis rather than a full-year basis, JC Leow said.

 

 

http://www.todayonline.com/singapore/court-orders-hewlett-packard-pay-retrenched-sales-specialist-about-s627000

 

http://www.stjobs.sg/career-resources/money-matters/former-exec-sues-hp-for-more-than-600000/a/159351

 

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waaaa so high comm selling servers ........

 

Not as easy as you think....

 

Gotta send text messages to clients asking if they DIY.

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hahhaah thats Oracle

 

 

 

Not as easy as you think....

 

Gotta send text messages to clients asking if they DIY.

 

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The servers are 5 million.

 

The commission 600k?

 

I need to quit my job!

 

No wonder HP sinking

Edited by Friendstar

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The servers are 5 million.

 

The commission 600k?

 

I need to quit my job!

 

No wonder HP sinking

It's for new customer mah.

 

Anyway, sell at 5mil, the cost might be very low??

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The servers are 5 million.

 

The commission 600k?

 

I need to quit my job!

 

No wonder HP sinking

 

From the post...

 

 

NETS was a HP customer but decided in late 2010 to buy IBM servers. The platform-migration process ran into problems and Ms Chin and her colleagues tried to woo NETS back in 2011 by, among other things, refusing to extend maintenance services for the existing servers unless NETS inked a new contract with HP.

 

Train their employees to strong arm customers like this? No wonder HP is sinking...

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From the post...

 

 

Train their employees to strong arm customers like this? No wonder HP is sinking...

 

I was taken aback by that comment too. How can HP do that to customers who refused to buy new servers?

 

That is blackmail. <_<

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From the post...

 

 

Train their employees to strong arm customers like this? No wonder HP is sinking...

I don't see anything wrong with that actually. I won't want to continue with the the maintenance of Ian Ho too. What if the bug was from the competitor server and end up I have to help clean up?

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I don't see anything wrong with that actually. I won't want to continue with the the maintenance of Ian Ho too. What if the bug was from the competitor server and end up I have to help clean up?

 

sounds like the town council thing [laugh]

Edited by Mustank

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I don't see anything wrong with that actually. I won't want to continue with the the maintenance of Ian Ho too. What if the bug was from the competitor server and end up I have to help clean up?

 

Maybe true...

 

but the article didn't make it sound like a compatibility issue... and it's not like these HP servers are using exotic operating systems like in their old Itaniums. Everything is software and everything is virtual nowadays.

 

HP should have given a cost for the maintenance (if the product isn't EOL)... could have asked for an obscene amount and NETS would have had to make cost-benefit analysis on whether to continue or throw it all out.

 

But this type of ultimatum saying we won't extend maintenance if you don't continue buying our hardware is wrong I think.

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The servers are 5 million.

 

The commission 600k?

 

I need to quit my job!

 

No wonder HP sinking

Not only you need to quit, even i need to quit now

 

Waha

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HP sinking? My company this year just swap from IBM to HP. [confused] So no more new Lenovo laptops. Now starting with HP laptops.

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