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  ARM Give a man a fire and he's warm for a day, but set fire to him and he's warm for the rest of his life (Terry Pratchett, Jingo)

Ex-Twitter Brits launch legal challenge against dismissal

(2023/01/13)


UK Twitter employees included among the thousands fired when Elon Musk took control of the company have challenged their dismissal, claiming a collective consultation redundancy process currently under way isn't conforming to British law.

After finalizing the [1]$44 billion Twitter buy, Musk fired several execs including former CEO Parag Agrawal, finance chief [2]Ned Segal , and head of legal policy, trust and safety (who took the decision to ban ex-US president Donald Trump) Vijaya Gadde. He also sacked almost 50 percent of Twitter's workforce globally, including staffers based in Britain.

In a legal letter sent to Twitter UK Ltd and seen by The Register , some of the staffers in the midst of the "unfinished" process say their formal grievances haven't been dealt with properly by the social media company.

[3]

At the heart of their complaint appears to be the allegation that decisions about their employment were made before November 4, and that the "retrospective attempt" to apply the process is therefore "unlawful" and "unfair." The process, claims the letter, began after the employees' "abrupt removal from its premises and systems. According to publicly available sources and comments, this appears to have been led by fiat from the US and potentially with the assistance of SpaceX staff."

[4]

[5]

Their lawyers, London's Winkworth Sherwood, wrote in the letter that employee reps sought and were not given clarity on the "selection criteria" Twitter planned to apply to those in scope of the redundancy exercise.

They also noted that the "ACAS Code in relation to the investigation of a grievance and the procedure it follows will be taken into account if a case reaches the Employment Tribunal."

Mass layoff lawsuits elsewhere

Twitter is also facing would-be class actions in [6]California where similar claims are being raised. The earliest of these suits, filed the day before the takeover (November 3, 2022), already sought to prohibit Twitter from circumventing the requirements of the WARN Act and the California WARN Act by conducting mass layoffs without providing the required notice, as well as "soliciting the employees it is laying off to sign separation agreements that release their claims under the WARN Act and/or California WARN Act, without first informing them of this lawsuit or their rights under those statutes."

In that suit, Cornet v. Twitter, Inc , one of four filed by US attorney Shannon Liss-Riordan against Twitter on behalf of former America-based staffers affected by the takeover, Twitter's most recent filings indicate it is attempting to force the plaintiffs to have their claims decided through an individual arbitration process instead of a group action, as well as to transfer the venue from California to Delaware. The social media corp claimed the merger agreement contract stipulates Delaware as the exclusive venue for any legal proceedings "aris[ing] out of or relating to" the Merger Agreement."

UK employment law

Before a case gets to tribunal, UK employees must contact ACAS (the Advisory, Conciliation and Arbitration Service), a non-departmental public body, first to try to resolve the dispute through early conciliation. ACAS states that "employers must follow a full and fair procedure in line with the ACAS Code for any discipline or grievance case" as the "procedure an employer follows and an employee's actions will be taken into account if the case reaches an employment tribunal."

[7]Chinese Tesla owners protest another round of price cuts

[8]Twitter data dump: 200m+ account database now free to download

[9]Elon Musk's cost-cutting campaign at Twitter extended to not paying rent, claims landlord

[10]Twitter whistleblower Peiter 'Mudge' Zatko lands new gig at Rapid7

The letter says that if "a satisfactory outcome" with Twitter can't be achieved, some of the employees will be moving forward with tribunal claims against the company.

The UK's Employment Tribunal presides over cases from employees, job applicants and trade unions over various issues including pay (unfair deductions, treatment etc.), dismissal and discrimination.

[11]

Over on the [12]FT , which said it saw a document outlining the severance package Twitter offered, it is claimed that UK-based staff were offered two months' gross basic salary, plus two weeks' gross basic salary for each year they were employed, apparently "falling short of norms in the wider tech sector" – such as Meta's offer of 16 weeks base pay plus two additional weeks for every year of service in its [13]November '22 layoffs.

It also said the union had written to Twitter asking it to "pause" the redundancy process.

We wrote to one of the Twitter email addresses that doesn't bounce back in order to give Musk's social media corp the opportunity to respond. Where there's life, there's hope. As always, folks, you know how to contact us and we'd be happy to update with your statement.

[14]

Meanwhile, the SpaceX boss continues to fight legal battles across the pond, not only in relation to Twitter, but also [15]Tesla shareholders who think he's paid too much.

He's also come in for criticism since the acquisition for dividing attention between SpaceX, Tesla and Twitter as well as for [16]dunking on Twitter's engineers and firing them after they publicly lambasted his technical knowledge.

The man himself has claimed he will resign as chief executive of Twitter once he finds a replacement, having previously insisted he [17]never wanted to be CEO of anything .

It's not all bad news for Musk. He did score at least one win so far this year – the SpaceX boss is officially one of the first [18]Guiness World record holders in 2023. Well done. ®

Get our [19]Tech Resources



[1] https://www.theregister.com/2022/10/27/musk_sink_twitter/

[2] https://www.theregister.com/2022/10/28/musk_twitter_takeover/

[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Y8GOMLwy84iiv-NYjrUZNAAAABA&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Y8GOMLwy84iiv-NYjrUZNAAAABA&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Y8GOMLwy84iiv-NYjrUZNAAAABA&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[6] https://www.courtlistener.com/docket/65680829/1/cornet-v-twitter-inc/

[7] https://www.theregister.com/2023/01/09/china_tesla_price_cuts/

[8] https://www.theregister.com/2023/01/05/twitter_leak_200m_accounts/

[9] https://www.theregister.com/2023/01/03/elon_musks_costcutting_campaign_at/

[10] https://www.theregister.com/2023/01/05/zatko_rapid7/

[11] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Y8GOMLwy84iiv-NYjrUZNAAAABA&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[12] https://www.ft.com/content/44cda247-7f53-4296-abf0-9b7446f5d04f

[13] https://www.theregister.com/2022/11/09/meta_redundancies_mark_zuckerberg/

[14] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Y8GOMLwy84iiv-NYjrUZNAAAABA&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[15] https://www.law360.com/employment-authority/articles/1052075/tesla-shareholder-calls-musk-s-stock-award-staggering-

[16] https://www.theregister.com/2022/11/14/musk_twitter_rpc_spat/

[17] https://www.bbc.com/news/technology-58035124

[18] https://www.guinnessworldrecords.com/news/2023/1/elon-musk-suffers-worst-loss-of-fortune-in-history-amid-market-madness-731988

[19] https://whitepapers.theregister.com/



Wouldn't hold out too much hope...

Martin an gof

...after P&O got away with essentially the same action and actually [1]admitted they broke the law !

Something seriously broken in UK employment practice.

M.

[1] https://www.bbc.co.uk/news/business-60862933

Re: Wouldn't hold out too much hope...

Potemkine!

P&O boss won a well-deserved [1]award for that.

[1] https://www.nautilusint.org/en/news-insight/news/pando-ferries-boss-officially-worlds-worst-employer/

Re: Wouldn't hold out too much hope...

that one in the corner

Elon clearly aiming to wrestle that award away from Hebblethwaite.

Re: Wouldn't hold out too much hope...

Anonymous Coward

We're coming up to the ten year anniversary of the collapse of 2e2. They sacked 300-odd folk a couple of days before the January payday without so much as a day's notice!

I strongly suspect that most of those guys would have bitten the hand off of anyone offering two weeks money for each year worked!

Non-flattering flattering

b0llchit

It's not all bad news for Musk. He did score at least one win so far this year – the SpaceX boss is officially one of the first Guiness World record holders in 2023. Well done.

What an honour it is to be crowned for the record of biggest loser of all time . It will surely remind future generations that it takes quite a bit of ignorance to replace his muskness' place at the bottom record.

There will probably be rather non-flattering sayings in the (near) future like "Don't try to Musk it" and "You are behaving Musk" .

Re: Non-flattering flattering

Dan 55

Musk buying Twitter is the modern-day Brewster's Millions.

Re: Non-flattering flattering

Halfmad

I'd love to have that much money to lose.. yet somehow still be worth a fortune.

A bit odd to focus on amount of redundancy pay

tiggity

"It is claimed that UK-based staff were offered two months' gross basic salary, plus two weeks' gross basic salary for each year they were employed, apparently "falling short of norms in the wider tech sector"

It's significantly more than UK statutory minimum.

UK statutory minimum is not great, but sadly it's all a company needs to do for compliance on redundancy pay & "sector norms" arguments are a bit tenuous when there not that many "huge" IT companies employing decent numbers of people in the UK so cannot really argue there are established norms in that way. Generally if UK employment contracts do not mention redundancy pay structure then assumption is employer will pay statutory minimum.

Surely they would be better off finding out instances where Twitter had not followed all the required processes when making people redundant as that's the sort of thing tribunals regard as red flags (& with the rushed process & likely being US legal team led, if I was a gambler I would bet good money on some violations having occurred).

IANAL, just had experience of a perm job where mass redundancies occurred (in that case most of the new project dev work was being outsourced cheaply abroad & so they had a nice legal get out on the thorny issue of whether a job is really gone or not as technicality of jobs axed related to old completed projects). In that case payoffs were well above stat min to keep people sweet (& a few people got to do a bit of well paid consulting afterwards as (often the case on big layoffs) there was key knowledge / skills lost in the rounds of redundancies )

Re: A bit odd to focus on amount of redundancy pay

Dan 55

Perhaps it's because Twitter didn't consult within the required timeframe first and is offering less than 90 day's pay? See section 3 [1]here .

Also, Twitter seem to have fired the person in charge of [2]filing accounts with Companies House .

[1] https://researchbriefings.files.parliament.uk/documents/CBP-9529/CBP-9529.pdf

[2] https://find-and-update.company-information.service.gov.uk/company/07653064

"a collective consultation redundancy process currently under way isn't conforming to British law"

Pascal Monett

Musk's reaction : "Law ? What is this 'law' thing you speak of ?".

Pyrrhic victory ?

Anonymous Coward

Even if they win, will they ever see a penny ? You can bet your bottom dollar that "Twitter" won't have any assets in the UK. Except the domain name, of course. And I will bet there are a myriad of excuses as to why that can't be seized.

There is one person very, very happy with Musk's Twitter problems

Anonymous Coward

.. and his name is [1]Gerald Ratner , whose mistake was massive enough to make it into [2]common parlance .

I think it's time to define what "doing a Musk" really is, though. I'd say it is believing in your own hype so much that you're willing to waste $44b of partially borrowed money on what any due diligence would have identified as something that was about to become a black hole, and then mismanaging it such to make the latter a definite reality.

I hope someone can come up with something more punchy, "being a rich moron" would be too vague and is also not exclusive to Musk.

[1] https://en.wikipedia.org/wiki/Gerald_Ratner

[2] https://www.thisismoney.co.uk/money/markets/article-9505003/Gerald-Ratner-reeling-30-years-gaffe.html

He's just like Capistrano, always ready for a few swallows.